Forexlive Asia FX News 8 Jan

Forex news for Asia trading for Friday 8 January 2021

• SEK and NOK to gain against the euro this year
• FX option expiries for Friday January 8 at the 10am NY cut

• Australia tightens travel rules for inbound flights
• US-China strains to increase as US confirms its sending its UN ambassador to Taiwan
• How to forecast yen weakness
• Brazil officials say second Chinese coronavirus vaccine has 78% efficacy rate
• The USD has shown a spurt of strength in Asia morning trade
• PBOC sets USD/ CNY reference rate for today at 6.4708 (vs. yesterday at 6.4608)
• Ahead of NFP Friday, BLS posts poor employment figures for 2020
• Trump concedes a new US administration will be inaugurated on January 20
• The UK will require mandatory COVID-19 tests on all incoming travellers

• Fed’s Mester is optimistic H2 of 2021 economic growth will be quite a bit stronger than 2020
• Japan Household Spending for November +1.1% y/y (expected -1%)
• Australia to buy 51 million doses of Novavax's COVID-19 vaccine
• Canada - Ontario to transfer patients out of regions worst-hit by COVID-19
• US media report that US VP Pence is against using the 25th Amendment to remove Trump
• The PBOC has (gently) tapped on the brakes of yuan appreciation
• Australia Queensland state premier says greater Brisbane to go into three day covid lockdown
• Fed's Bostic says may taper QE bond purchases earlier than expected
• Trade ideas thread - Friday 8 January 2021
• More from Fed's Daly - economy resilient but has a deep hole to climb out of
• Boeing to pay more than $2.5bn over DOJ 737 Max fraud charges

The USD added a little strength during Asian morning trade, but the ranges were not large. Currencies dropped away a little pretty much across the board but then retraced some of their losses. 

It is difficult to pinpoint any obvious catalyst or catalysts beyond the 'usual suspects' - US yields driving some flow to the dollar, coronavirus developments are not entirely positive. US politics continued to play out, reports of a police death from an assault in the insurrection (the death was later denied), another Trump Cabinet member resigned. Trump posted a Twitter video (his suspension has expired) in which he conceded there would be a new administration inaugurated on January 20 and berating his supporters from behaving in the way they did.

Australia saw restrictions tightened again for some areas. The UK strain has been detected in Queensland capital Brisbane and the city will go into a 3-day lockdown.