Forex news for Asia trading Friday 5 June 2020
- A weekend read from the BoE - 'doom loop', 'stress-amplifiers' … its a page turner!
- NZ government will further extend Covid-19 support schemes for business
- Some reports circulating that the US plans to allow some Chinese passenger airline flights to continue
- Australian PM Morrison says very much in favour of travel bubble with New Zealand
- PBOC sets USD/ CNY reference rate for today at 7.0965 (vs. yesterday at 7.1012)
- FX option expiries for Friday June 5 at the 10am NY cut
- More on Novavax - US Dept Defense contract just announced re coronavirus vaccine
- Oil - Further reports of an OPEC + meeting on Saturday (moved forward from June 9)
- Novavax wins a US contract for a coronavirus COVID-19 vaccine
- ANZ forecast NZD/USD to 0.5500
- Japan - Household spending for April: -11.1% y/y (expected -12.8%, prior -6.0%)
- Iran has released a hostage, Trump response: "Thank you to Iran, it shows a deal is possible!"
- US nonfarm payroll - Goldman Sachs preview
- UK - GfK Consumer Confidence for May, final: -36 (expected -34, prior -34)
- Australia - AiG Services PMI for May 31.6 (prior 27.1)
- Here is a $20K forecast for Bitcoin by year end
- ICYMI - US Trade Rep Lighthizer feels “very good” on phase one trade agreement with China
- Asia forex intervention, HKMA buys USD
- More from ECB's Lagarde - economic activity is gradually picking up
- Trade ideas thread - Friday 5 June 2020
- US Sec State Pompeo to warn against ‘fraudulent’ accounting practices of China-based companies
- Oil rumour - OPEC drag forward their meeting from June 9 to June 6
- Lufthansa will replaced in the DAX by Deutsche Wohnen
Asia FX ranges were tight indeed for the session here with very little fresh news nor data that had much of an impact.
Rumours circulated that next week's OPEC+ (ie, OPEC plus non-OPEC producers, such as Russia) meeting will be brought forward to tomorrow, Saturday June 6. An extension of the output cuts said to be on the cards.
Other items included ECB head Lagarde expressing just a hint of optimism ahead (following her big boost to the Bank's PEPP program Thursday), further protests and riots in the US, NZ extended support to more firms in the country (see bullets above - NZD/USD an out-performer on the session) and another firm working on a coronavirus vaccine attracted more funding . More on all of these above in the bullets.
As I said in the first line to the wrap, ranges were small for major FX. NFP data is due from the US Friday morning (1230GMT) but its not a focus to the intensity it has been in the past.
