Forex news for Asia trading Friday 7 June 2019
- PBOC Gov Yi Gang: China has lots of policy room if trade war worsens
- Trump - I'll definitely get a deal with China
- ANZ on the yuan - USD/CNY unlikely to breach 7 (video interview)
- More from US President Trump interview - Mexico needs us, we don't need them
- US President Trump says Germany has not stepped up much on defense sending
- JPMorgan London Whale trading debacle - finally over. Fed drops case.
- JP Morgan on the BOJ - expect further easing in September
- Australian home loans data for April
- BOJ has increased the size of its purchase of JGBs in the 10-25yr window
- GBP - by election result sees Labour hold seat - Farage's Brexit Party polled strongly
- Awaiting the USD/CNY reference rate today? China is on holiday.
- Standard Chartered on the FOMC - says case for pre-emptive cuts strengthens
- Japanese Economy Minister Motegi to meet with US' Lighthizer June 13 to discuss trade
- Westpac- FOMC to cut rates, in September and December.
- Japan Overall Household spending, April: 1.3% y/y (expected 2.6%)
- Japan Labor Cash Earnings, April: -0.1% y/y ( expected -0.7%)
- UK Times reports most EU governments will support another delay to Brexit
- Mexican Foreign minister Ebrard says talks with the US will continue on Friday
- NZ data - Q1 construction work surges above expectations
- Australia - S&P data shows problem home loans at their highest level since the aftermath of the GFC
- ICYMI - Brexit (?): Ford has announced plans to close an engine plant in Wales
- Australian Construction PMI (May 2019): 40.4 (prior 42.6)
- WSJ: U.S., Mexico Make Progress on Migration Issues, but Tariffs Still Loom
- ANZ on where and when AUD/USD will bottom (spoiler: 0.65, this year)
- Mexico - Fitch has downgraded Pemex to BB+ from BBB-
- US VP Pence says progress made in talks with Mexico - but no deal yet
- Brexit - Hammond wants to keep a 'war chest' - May wants to spend before departing
- White House says still moving forward with Mexico tariffs
- Citi likes EUR/USD
After markets had closed we saw news come from the US/Mexico talks. In a nutshell (see bullets above for move) we were assured progress was being made, told that talks would continue on Friday, and that the Monday deadline was still in place. Intermingled amongst the politics was news Moody's had downgraded Pemex to junk.
The peso weakened (USD/MXN touched highs above 19.76) and then fell back a little later to under 19.70.
There was more politics afoot - Brexit related this time with Nigel Farage's Brexit party polling very strongly indeed in a by-election, but not enough to wrest the seat from the incumbent Labour Party. It was very close though. Cable is barely changed on the session.
Also in the barely changed bin are EUR and CHF. USD/JPY ticked back to highs above 108.50 but has not held above there as I post. Its looking like it will head above there but of course, we are only an arbitrary headline away from anything-could-happen. Best to stay in touch and nimble.
AUD/USD and NZD/USD did not do much, but as I update both are testing session lows. The two have not been helped by a weaker offshore yuan, which was sent down on comments from People's Bank of China Governor Yi Gang on deprecation, see bullets above.
Gold is a touch softer on the session, there isn't much in it though. .
Trump was on Fox, various comments but nothing unexpected.
Still to come:
