Forex news for Asia trading for Monday 8 March 2021
- BOJ Gov Kuroda's comments on Friday being given credit for supporting Japanese shares
- Bitcoin is back under $51K
- ICYMI - Saudi Arabia set April official selling price for its Arab Light crude to Asia higher
- China's state planner says the basis of China's economic recovery is not solid yet
- Full text (English translation) of China's Work Report, Implementation plan delivered at the NPC
- US President Biden is keen to sign direct stimulus checks - coming within 2 weeks
- Fed Chair Powell & FOMC colleagues are looking at a new set of labor market indicators
- People’s Bank of China sets yuan reference rate at USD/ CNY 6.4795 (vs. Friday at 6.4904)
- NY Times reports the US is planning a series of covert strikes on Russian networks
- JPM raise USD/CNY year-end forecast to 6.35 (from 6.25)
- Deposits at Japan's banks have grown at their quickest pace ever
- BOJ watchers - we may get a clue today on the potential to widen the JGB band
- Japan data - Balance of Payment Current Account for January Y 646.8bn (vs. expected Y 1253.4bn)
- Currencies are higher against the USD after weekend US (more) stimulus news
- Oil prices have moved higher following the attacks on Saudi facilities on the weekend
- Morgan Stanley says US economy is on fire, the recession ... 'its over'
- PIMCO says developed economies may require stimulus for longer than expected (because China)
- Trade ideas thread - Monday 8 March 2021
- Oil traders note - Saudi oil export ports, facilities targeted in attacks Sunday
- Monday morning open levels - indicative forex prices - 8 March 2021
- US Senate passes $1.9 trillion stimulus bill
- A Fed hike is fully priced in for December 2022
Saudi oil export facilities were the target of a Sunday attack (see bullets above) that, despite not causing much harm (according to an official statement), saw oil prices underpinned through the week-opening session here. Brent traded above $71, WTI towards $68, and both have pulled back just a little as I post.
Over the weekend we also had news out of the US where the Senate passed a bill approving Biden's latest coronavirus relief economic package, another huge round of stimulus (see bullets above). The bill will be voted on in the House of Reps on Tuesday where it will pass and then head to Biden's desk where he will sign it into law. The opening response from markets to this was risk positive with higher US equity index futures and a lower dollar (currencies up against), but, on a cautionary note, higher US yields also. This initial risk response was turned around, though. As I update US equity index futures are negative for the session. Currencies, too, gave back gains. EUR/USD has given back all its positive (see chart below) and is at session lows and negative for the day here. CAD, ditto, while AUD, GBP, NZD are all down from their earlier highs also. 'Sell the fact' explanations have followed along in the wake of the turn down.
Fresh Monday news and data flow was barely existent.
Bitcoin had a strong weekend and hit highs just shy of US$52K during morning trade in Asia. As I post it has slipped back to circa $50.5K. Gold added on dollars, trading above $1714 at one stage before dropping back under $1710.