- NZD vulnerable to risk aversion,but fundamentals supportive
- NZ PM Ardern announces a further reduction in Auckland coronavirus restrictions
- 12+ Chinese listed companies have suspended production in response to COVID restrictions
- Bank of Canada announcement Monday, followed by Fin Min Freeland and Governor Macklem
- G7 Finance Ministers are meeting today, Monday 13 December 2021, to discuss inflation
- PBOC sets USD/ CNY reference rate for today at 6.3669 (vs. estimate at 6.3606)
- Reports that Binance has withdrawn its bid for a local crypto exchange in Singapore
- South Korean media say an in principle agreement has been reached to end the Korean War
- The Bank of Japan is (Omicron) wary over the results of its Tankan
- South Korean exports data for December start off strong, +20% y/y in the first 10 days
- BOJ Tankan report for Q4: Large manufacturing index +18 (expected 19, prior 18)
- Japan Machinery Orders for October +3.8% m/m (expected 2.1%) and +2.9% y/y (expected 4.0%)
- NZIER survey forecasts for the NZD - higher to March 2023
- Australian government to underwrite AUD7bn in loans for businesses hit by Delta lockdowns
- El Erian on the Federal Reserve mistake that may drive a spiral of higher inflation
- AUD -Reserve Bank of Australia Governor Lowe speaks this week
- New Zealand's services sector PMI improved during November, to 46.5 from 44.9 in October
- Trade ideas thread - Monday 13 December 2021
- Update on UK COVID-19 - PM Johnson declares an Omicron emergency
- Monday morning open levels - indicative forex prices - 13 December 2021
GBP gapped lower on Monday morning early here in Asia with the news on Sunday from the UK of PM Johnson tightening COVID-19 restrictions again for the country and rolling out an accelerated booster shot program. This, of course, is in response to a rapid increase in Omicron variant COVID-19 infections. GBP has retraced to cover much of the gap and has, as I post, settled more or less sideways just a touch softer.
USD/JPY was a mover, it too gapped lower and retraced but has consolidated its retrace to be higher on the session. The Bank of Japan Tankan for Q4 showed small improvement once again but sentiment is well below re-pandemic levels.
Elsewhere across major FX the moves are more contained, and mixed.
Chinese equities are higher for the day, with the mainland Shanghai Comp and HK’s Hang Seng both up. Oil gained also.
BTC/USD lost ground to under $49K, undercut by the Binance news (although that really should not be much of a surprise (see bullets above).
Coming up on Monday from Canada, Bank of Canada Governor Macklem speaks: