Forex news for Asia trading on Thursday 24 June 2021
- Gundlach says if Bitcoin futures (XBT) close below $30,000, that's an important juncture
- China's banking regulator says it expects PPI to hit 10%
- National Australia Bank sticking with 2024 as the likely year for an RBA rate hike
- US political reports say Pelosi, Schumer not yet endorsing the bipartisan infrastructure proposal
- Bank of Korea's Governor Lee says an orderly policy normalisation will begin this year
- PBOC sets USD/ CNY central rate at 6.4824 (vs. yesterday at 6.4621)
- US negotiators are prepared to return to indirect talks with Iran on nuclear deal
- Goldman Sachs raise their forecasts for USD/ yuan
- Taiwan chip manufacturer TSMC flags price rises of up to 20%
- Japan Services PPI for May +1.5% y/y (vs. prior 1.0%)
- US Senator Romney confirms 'framework' agreement on infrastructure reached
- Shenzhen’s Yantian container terminal is back in operation after Covid outbreak
- JP Morgan says BoE may not too far behind the Fed in signally less easy policy
- US Senator Cassidy says has a 'framework' on infrastructure deal, going to the White House with it
- Gold's rollercoaster ride - up on weak US economic data then back to earth on Fed hike talk
- US Senator Manchin, Tester & Romney say they are close to an infrastructure deal
- ICYMI - Saudi oil minister says OPEC has a role in taming inflation. A hint of more supply coming?
- Crypto is 'rat poison' (but there's a but ...)
- More from Fed's Rosengren: Markets are not pricing assets as if they expect 3% inflation
- Trade ideas thread - Thursday 24 June 2021
- Fed's Rosengren says the economic recovery is robust
- Goldman Sachs revise their EUR/USD forecasts (lower)
- NASDAQ closes at a new record but off the highs levels
Major forex was little changed during the session here in Asia. Major currencies have tracked narrowly sideways, the CHF has weakened a few points
The only news of note was on US infrastructure negotiations. A bipartisan group of senators say they have reached an agreement on a 'framework' for a deal, with more than 500bn USD in new spending. They have a scheduled meeting at the White House on Thursday with US President Biden. I'd be wary of reading too much into this; its not bad news, but perhaps White House press secretary Jen Psaki's response sums up the tentative proposal:
- "The group made progress towards an outline of a potential agreement."
That's about as vague as you can get without it being a complete blow off.
House leader Pelosi and Senate leader Schumer have not given their ticks of approval, saying they would like to see details before doing so. Note that the US Senate shuts for a two-week break at the end of this week, and thus its difficult to see any firm deal being agreed to by then.
There was no other news of note.
On the central bank front the People's Bank of China injected funds into the banking system today for the first time since March (see the yuan mid setting post if you'd like details). The Bank of Korea indicated it begin policy normalisation this year (that is, wind back on the easing taps).
Bitcoin has dribbled a little lower: