Forex news for Asia trading Friday 24 April 2020
- Researchers in France are investigating if nicotine could protect people from contracting the coronavirus
- More on Mnuchin mulling oil industry bailout
- Japan's Economy Minister Yasutoshi Nishimura says new stimulus to add 4.4% to GDP
- Ray Dalio sneak preview of his new book available - "The Changing World Order"
- China injects funds - PBOC TMLF operation
- Some bleak outlooks for the global recession ahead
- PBOC sets USD/ CNY reference rate for today at 7.0803 (vs. yesterday at 7.0887)
- FX option expiries for Friday April 24 at the 10am NY cut
- WSJ report - US retail giant J.C. Penney in advanced talks for bankruptcy funding
- Reuters poll shows global economy expected to have its steepest contraction on record this year
- Mexico central bank comments - drop in commodity prices has reduced EM room for manoeuvre
- More Japan data - PPI services for March: 1.6% y/y (expected 1.7%, prior 2.1%)
- Analysts on the mooted BOJ 'unlimited' JGB buy plan
- Japan CPI data for March - headline inflation 0.4% y/y (vs. expected 0.4%)
- US Treasury Secretary Mnuchin says no plans for mortgage servicer lifeline
- GfK Consumer Confidence for April (preliminary): -34 (expected -40)
- NZ finmin Robertson says there will be more government support
- Boeing is readying to cut output of its Dreamliner aircraft, jobs
- US House has approved the $484bn coronavirus bill
- More support from the Federal Reserve - to expand access to PPP money
- For the oil traders - CME has hiked the margin on WTI CL contracts again
- Nomura on the funds driving equities higher, and those that have not.
- Trade ideas thread for Friday 24 April 2020
- Update on the BOJ meeting next week - unlimited JGB purchases ahead?
There was very little movement across major FX today.
There were a few news items, and data, but non-impactful.
US Treasury Secretary Mnuchin: is considering bailout options for US energy firms reeling under collapsing oil prices, The Fed is considering expanding its PP program. US retailing giant JC Penney is reportedly preparing for bankruptcy. Boeing is back pedalling again on aircraft production, this time its the Dreamliner (see bullets above for more on all of these).
Japan inflation data continues to show CPI well, well under the BOJ target (the Bank meet on Monday next week and so far the trial balloons on floated on expanding their JGB purchase limit have been met with underwhelming responses).
As I said above, forex movement was small for the major traded currencies. There has been a little strength for the US dollar across the board, but in small ranges only.
We await Europe/UK and US developments ahead. US durable goods data for March is a focus ahead (1230GMT) and is expected to show a -12% slump for the headline result.
