ForexLive Asia FX news wrap: Oil price drop
Forex news for Asia trading for Monday 26 October 2020
- Goldman Sachs on a Democrat blue wave - only a modest impact
- China's new law to legalize digital yuan
- New outbreak of COVID-19 in China, 137 cases in the far northwest
- PBOC sets USD/ CNY reference rate for today at 6.6725
- FX option expiries for Monday October 26 at the 10am NY cut
- Singapore has temporarily stopped the use of two influenza vaccines
- European Central Bank monetary policy meeting this week - preview
- The People's Bank of China USD/CNY reference rate is expected at 6.6698
- BOJ monetary policy meeting this week - preview (spoiler no change)
- Japan services PPI for September +1.3% y/y (expected +1%)
- Bank of Canada monetary policy meeting this week - preview (spoiler - no change)
- Hong Kong is closed for a holiday today
- Its a big week in China - next 5 year economic plan being set
- Grim repeat - US intensive care access to be rationed as COVID-19 cases surge
- Louisiana, Mississippi and Alabama in the path of Tropical Storm Zeta (soon to be hurricane)
- UK government considering allowing banks to begin paying dividends again
- Australian Treasury official floats a hopeful thought on peak unemployment
- Looks like it will be not long until US Vice President Pence tests positive for COVID-19
- Canada's Cenovus to buy Husky for $US2.9 bn
- Brexit - UK Northern Ireland minister Lewis says good chance of a deal with EU (weekend comments)
- Australian arm of Coca Cola may be purchased by its European sibling
- Weekend coronavirus vaccine news - AstraZeneca resumes US trial
- Weekend Pelosi comments - Covid relief deal could still happen before Election Day
- Trade ideas thread - Monday 26 October 2020
- WSJ reports: Facebook Prepares Measures for Possible Election Unrest
- Brexit - speculation EU negotiation team to extend talks to Wednesday
- UK press - PM Johnson will wait for US election result before no-deal Brexit decision
- France is preparing for a fresh lockdown as new daily confirmed coronavirus cases surge to highest ever
- Monday morning open levels - indicative forex prices - 26 October 2020
- Mike Pence's chief of staff and four other members of inner circle get coronaivrus
- Europe reports another day of big COVID numbers
- Stock earnings calendar moves into the big names this week.
- The SNB may have to sell part of its >$100 bn US stock portfolio
- PBOC Governor Yi Gang says will reduce restrictions on cross-border use of the yuan
- Brazil will import Chinese-produced coronavirus vaccine Sinovac for trials
When oil trade opened lower for the week it set the tone for lower currencies and US equity indexes for much of the session here, although currency moves have been held to small ranges.
The downbeat sentiment reflected, one, a weekend which saw no evident advance of US economic stimulus negotiations. Sure we got the usual soothing words from the politicians on both sides, both Meadows and Pelosi expressed hopes of a deal pre-election. McConnell said again he'd examine any deal to take to a vote in the Senate. A pre-election stimlus though is not going to happen - even if a 'deal' is agreed and McConnell takes a look he will not be able to deliver the Senate votes to pass the bill. For months now his party there has been opposed to any bill of the scale Pelosi and Trump are talking about.
Secondly, COVID-19 infections continued their surge in Europe and the US, at an accelerating pace. European countries (Spain, Italy are two) announced further movement restrictions. There will be more of these to come, dampening economic activity. As Europe and the US head into the winter cold and flu season its difficult to see too much of a silver lining (lower death rates from coronavirus infections than the first wave excepted).
China reported a new outbreak in the northwest of the country.
Three, more specifically for oil since its in the headline, Libya is upping the pace its bringing production back online, adding supply into the market.
Brexit headlines were mixed, with some officials seeing progress and some not, while there are reports UK PM Johnson is awaiting the result of the US election before making up his mind on a potential no deal exit.
For FX it was a day of net US dollar strength, but as mentioned the ranges have not been large.