ForexLive Asia FX news wrap: Swings for GBP in the early hours
Forex news for Asia trading Monday 7 September 2020
GBP was a mover in the very early hours of Monday morning in Asia, summary of posts here (read from the bottom up for the chronological order):
- Brexit - More on UK PM Johson setting an October 15 deadline (here's the why)
- More Brexit - UK PM Johnson reported to set October 15 as the deadline for an EU deal
- GBP update following all the Brexit headlines
- Brexit - FT reports the UK is planning a new move that risks the collapse of talks with the EU
- On Sunday the UK reported the highest number of new coronavirus cases since May, nearly 3,000
- Brexit - UK says not afraid to walk away from talks. Less than 20% chance of a deal.
- UK press reports the EU wants a potential veto on UK post-Brexit laws & regulations
GBP traded to lows circa 1.3230 in sketchy, thin liquidity conditions in response to plenty of news reports over the weekend of further obstacles in Brexit trade talks between the EU and the UK. Cable traded back up to just over 1.3260 and has spent the balance of the session dribbling back down a little. As I post its not back to as low as early trade.
Snapshot of early trade:
EUR/USD has edged lower over the course of the session so far here, but in little more than a 10 point range. AUD and NZD have been similarly range bound and just somewhat on the heavy side.
USD/JPY and USD/CHF also small ranges, CHF a tad weaker than the yen.
USD/CAD is higher with oil prices slipping in Asia - Saudi Aramco has lowered prices on some product to the region, and also to the US (see bullets below).
News and data flow was non-impactful otherwise. Asia took advantage of the Monday US holiday coming up to mainly sit on their hands.
A note on Hong Kong, there were almost 300 arrests on Sunday as protesters took to the streets to oppose the postponement of legislative elections and the new national security law.
- China property developer Evergrande expects to sell all its projects by October 8 (but there is a but)
- Goldman Sachs on coronavirus, herd immunity and expected vaccine approval
- A court in China has ruled to put a cap on consumer loan interest rates
- Australia data - ANZ Job Ads for Auguist : +1.6% (prior +19.1%)
- Reports the US is considering blacklisting China tech firm SMIC
- PBOC sets USD/ CNY reference rate for today at 6.8386(vs. Friday at 6.8359)
- FX option expiries for Monday the 7th of September at the 10am NY cut
- Saudi cut to oil pricing weighing on prices in Asia Monday
- Russia's minister Novak Friday comments weighing on oil prices still
- NZD hostage to global risk mood - but here is the support level for NZD/USD
- Nomura on the USD - the NFP report is not a reason to turn bullish on it
- BofA buy target for the NASDAQ
- Australian state of Victoria reports 41 new coronavirus cases
- Australia - Services PMI for August: 42.5 (prior 44.0)
- A weak beginning as Globex reopens for the week and equity index futures fall
- Australia has manufacturing agreements for COVID-19 vaccines signed
- Trade ideas thread - Monday 7 September 2020
- Monday morning open levels - indicative forex prices - 7 September 2020 - Brexit wobbles for GBP
- SoftBank sits on $4B profit on options trade - FT
- More on the big SoftBank options bet that has the market buzzing
- Coronavirus - Vaccine makers plan a public pledge to counter the pressure on the FDA