ForexLive Asia FX news wrap: Huge spike for GBP

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading for Wednesday 24 February 2021

It was an active day in some of the major forex pairs here during the session, cable the stand-out mover with a 100+ point jump (and a solid size retracement after GBP/USD spiked to highs (briefly) above 1.4230 on the back of a drop in EUR/GBP, cable stop loss buy orders being triggered and option hedge activity. Its since dropped back to be around 1.4155 as I post.

Also today we had the Reserve Bank of New Zealand policy statement which saw the kiwi $ initially marked down before it jumped to a fresh session high circa 0.7384. The RBNZ have given no guarantee but the indications are they see the next cash rate move as higher (see bullets above for more). Of course there was the usual couching of views around the risks ahead and what have you (again, see bullets above for the RBNZ today).

The Australian dollar rose with the NZD, to its highest since February of 2018.

USD/JPY and USD/CHF continued their gains, USD/JPY more so. While EUR/USD was realtively subdued for the day here.

The PBOC set the onshore yuan today ever so slightly weaker (for the CNY) than expected).

A couple of items not posted on but that are nevertheless of interest:

  • JP Morgan says: "We remain optimistic that governments can continue to gradually remove restrictions as the vaccine rollout gains momentum, and that will allow for a powerful rebound in growth during the middle quarters of this year."
  • China's Securities Times reported that China is likely to shift emphasis away from quantitative growth targets and instead focus on reforms and nurturing new growth drivers

Forex news for Asia tradingfor Wednesday24February 2021

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