Forex and Bitcoin news for Asia trading Thursday 24 May 2018
- China Premier Li says China strengthening cooperation good for Europe, world
- Japan trade min Seko: US car import tariffs would cause confusion in the global economy
- China min of commerce: China to encourage more imports from the US
- Japan chief cabinet secretary Suga: Monitoring US moves on car tariffs
- BOJ's Sakurai: BOJ must aim to hit inflation goal ASAP, but not recklessly
- PBOC sets USD/ CNY central rate at 6.3816 (vs. yesterday at 6.3773)
- North Korea Threatens to Call Off Summit, Calls Pence a ‘Political Dummy’
- US Commerce dept says initiates section 232 investigation into auto imports
- Trump says he instructed commerce to consider 232 probe of auto imports
- North Korean official to suggest reconsidering summit meeting with US
- China press reports that "More US farm product imports to benefit China"
- UK PM May is said to ask EU for new Brexit transition till 2023
- Reuters Japan Tankan: Manufacturers index for May: 22 (vs, April 21)
- NZ trade balance for April shows a bigger than expected surplus … but
- Canada blocks China proposed takeover of Aecon - more detail
- "Trump is said to consider slapping tariffs on US auto imports"
- Canadian government blocks Chinese takeover bid for Aecon
- German forgn min: I think we're far away from a compromise with the US on Iran
- President Erdogan says Turkey needs to be run like a company
- Trade ideas thread - Thursday 24 May 2018
- WSJ report on Trump's new US auto tariff proposal - up to 25%
More risk wobbles and flows into yen again here in Asia today. The key drivers were new tariff proposals from US President Trump and comments from North Korea threatening the June summit meeting with the US.
The WSJ broke the story on new auto tariffs late in US day:
- WSJ report on Trump's new US auto tariff proposal - up to 25%
- "Trump is said to consider slapping tariffs on US auto imports"
This quickly progressed from chatter from unnamed sources to Trump directing a new tariff investigation:
and then the Commerce Dept announcing:
From rumour to confirmation in only a few hours! Sorta like a news flash crash … Even the 'fake news' turkeys were left with their heads spinning! :-D
The trade tensions caused some sell off in risk. This was exacerbated by remarks from a North Korean official not only threatening the summit, but name calling the US Vice President!
- North Korean official to suggest reconsidering summit meeting with US
- North Korea Threatens to Call Off Summit, Calls Pence a 'Political Dummy'
The yen was a beneficiary through the session of the heightening in concerns. Yen crosses all slipped lower on a lower USD/JPY.
There was some selling in AUD, NZD and CAD also but since the early moves these have retraced to be little net changed against the USD on the session. CHF and EUR, also little change.
GBP got a boost from some Brexit - (perhaps) postponing headlines. Let's see if anything comes from these.
China made conciliatory noises on trade, but giving too much away but sounding open to negotiation.
Still to come:
