Forex news for Asia trading on Monday 5 July 2021

Yet again we await developments from OPEC+ as last week's Thursday meeting stretches into Monday. If you have missed developments an agreement to increase production (by 400K barrels a month from August to December inclusive) is being blocked by objections from the UAE (the country wants a greater allocation of output). Negotiations will continue today (Monday) (see bullets above for more). Expectations of the outcome span a wide spectrum from those seeing a deal along the lines of the +400K barrels/month proposal eventually being agreed, to a fall-back position of the current agreement remaining in place, to more extreme outcomes such as the UAE leaving the cartel, perhaps with others, to complete dissolution of OPEC (a really extreme outcome). Oil prices are more or less treading water awaiting today's outcome.

On the forex front its been a day of tight ranges across major FX. In general the USD has recovered just a little of its Friday post-NFP loss but the extent of moves is tiny.

The news front was fairly quiet but we did get a barrage of data from Australia, New Zealand, Japan and China. See the bullets above for the details, and of course given the ranges the impact was barely noticeable.

US markets will be closed Monday for the (observance) Independence Day holiday.

Bitcoin with a drop during the Asian morning Monday:

Forex news for Asia trading onMonday5July 2021