Forex news for Asia trading Monday 5 January 2015
Weekend:
- Fed’s Rosengren: Low inflation and wage growth urges patience
- Fed’s Mester: Pace of tightening more important than liftoff
- German government sees Greek exit from euro as a manageable outcome
- Greek opposition leader stirs the pot further … QE4me! (and write off my debt)
- PM Cameron talks of delivering EU referendum sooner than 2017
Monday:
- Financial Times: “This is going to be the year in which the eurozone will have its moment of truth”
- Greek election poll – SYRIZA 3.1 point lead over New Democracy
- Germany’s Gabriel says Berlin wants Greece to stay in eurozone
- Australia – AIG Performance of Manufacturing index for December 46.9
- Markit/JMMA Japan manufacturing PMI: 52.0 (flash was 52.1)
- Recap of Kocherlakota’s comments … “discretion is better than any rule”
- Nomura offer up 6 reasons for the sharp EUR/USD fall
EUR/USD was smashed lower in the early Asian timezone this morning, with stops below 1.2 combining with the regular Monday morning thin liquidity seeing a sharp 150 odd-point drop to multi-year lows below 1.19. Much of the ‘gap’ was covered on the bounce (but not all). Cable, too, took a sharp hit, briefly below 1.52 before it too bounced somewhat.
AUD and NZD sold off also. AUD/USD managed to recover all of its Monday losses before it revisited the morning lows (as I type). NZD/USD, though, had a more anaemic bounce and soon made fresh daily lows.
USD/JPY gained above 120.50 in the Tokyo morning but lost half a big figure soon enough before regaining it again. EUR/JPY was lower on the session given the violent EUR/USD fall.
Oil lost ground again, while gold was a standout in the timezone today, gaining to above $1192.
