ForexLive Asia FX news wrap: Fed’s Kaplan wants to taper ASAP

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading on Thursday 9 September 2021

The highlight of the session was an hour-long discussion including Federal Reserve Dallas branch President Kaplan. Leaving aside the current furore over his personal trading for a moment he gave a detailed outline of what he is looking for in order to begin QE tapering. More in the bullets above, but the long story short is he'd like to see an October taper kick-off. Of course Kaplan is only one voice on the Federal Open Market Committee, and not a voter this year but at least his views are clear. 

Apart from Kaplan's remarks it was a sedate Asia session. We did get Chinese inflation data for August, CPI coming in under expected while PPI (producer-level inflation) came in well above. As noted in the post while expectations are often for PPI rises to feed through into the CPI this has been evident in China, producers absorbing rising costs.   

Major FX rates traded small ranges. USD/JPY and USD/CHF slipped a few points but apart from Kaplan there was little to go on. 

In China, coal and coke futures continued their heady rise. 

Regional equities:

  • Japan's Nikkei +0.9%

  • China's Shanghai Composite ... basically flat on the session as I post

  • Hong Kong's Hang Seng -1.5%

usdyen chart 09 September 2021


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