Forex news for Asia trading on Thursday 24 June 2021

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:

Bitcoin chart 24 June 2021 gundlach