Forex news for Asia trading Monday 27 March 2017

  • Trump to sign executive order Tuesday promoting domestic oil, coal, natural gas
  • More weekend Brexit headlines from around the place
  • Weekend - Bundesbank director says on next ECB move: "everything is in flux"
  • White House denies report that Trump handed Merkel a bill for NATO services
  • China Jan - Feb industrial profits +31.5% y/y
  • China curbs purchases of new commercial property in Beijing by individuals
  • People’s Bank of China sets yuan reference rate at 6.8701 (vs. Friday at 6.8845)
  • USD slipping lower still ... AUD a clear underperformer though
  • PBOC Governor Zhou - China preparing to further open its financial sector
  • Warning, not FX! Bob Dylan interview
  • BOJ board members said easy monetary policy will be in place for some time
  • WSJ on US stocks: "many say a 10% retreat is overdue and would be healthy"
  • BOJ "Summary of Opinions" (March policy meeting)
  • Japan data - Feb. Services PPI: 0.8 % y/y (+0.5% expected)
  • UK manufacturers urge PM May to drop threat of no Brexit deal
  • USD slips a little more
  • NZ PM English says China FTA upgrade talks will begin in April
  • Japan corporate survey paints subdued outlook picture on wages
  • Unconfirmed reports of explosions heard in Paris suburbs - details sparse
  • Trade ideas thread - Monday 27 March 2017
  • Economic data due from Asia today - BOJ Opinions
  • Any advance on 3 stories for why the USD is lower?
  • OIL - Russia wants more time, data before deciding on deal extension
  • OIL - OPEC & non-OPEC to review output cut deal - extend for 6 months?
  • OIL - UAE will cut oil production more than expected under the agreement
  • German Chancellor Merkel's conservatives won a regional election - big boost
  • The US dollar is taking a beating in early trading
  • Monday morning Forex prices, early indications: 27 March 2017

Weekend:

  • Video: How to trade Article 50
  • Summer must be on the way as European clocks move forward
  • German state of Saarland goes to the polls in another test for Merkel
  • Opec/non-OPEC joint committee wants to extend oil output cuts by 6 months
  • Turkey's Erdogan says he may hold second referendum on EU accession talks
  • China's Zhou says monetary policy is not a panacea
  • The toughest part of being a hedge fund manager would be the yes-men
  • Tick-Tock' room to add to GBP shorts - BofA Merill

Friday (ICYMI)

  • ForexLive Americas FX news wrap: Republicans abandon effort to repeal and replace Obamacare

The USD started selling in the very early Asian Monday morning and was well lower by the time Tokyo was starting its day. Its was a weak USD nearly across the board and the weakness was maintained through the session.

Various factors came together to fuel the sell-off; prominent at the top of the list was the Healthcare vote failure on Friday (prospects were so poor for the bill that the vote was abandoned); this has prompted market concern that further programs may fail too - tax reform notably. Less than 100 days into the new administration and markets are already starting circulating "Do Nothing Donny" judgements. A tough crowd ...

The shaky response was also evident in US & global stocks; the opening of overnight stock index futures on Sunday evening (US time) saw a sharp move lower.

USD/JPY was a loser, down nearly a big figure from its late (US) Friday level before stabilising (for now at least). The yen has benefitted too from approaching end of fiscal year flows (yen buying).

EUR, CHF, GBP, NZD, CAD ... all traded higher to a great or lesser extent. The euro may have been given a little extra help from a Merkel win in a State election over the weekend (German Chancellor Merkel's conservatives won a regional election - big boost).

AUD was a notable absentee from the list of stronger currencies against the USD. It spent most of the session languishing a little either side of net unchanged. 'Risk' selling &, lower iron ore (and other commodities) contributing to its torpor.

Getting into the swing of things today gold XAU/USD is higher, well up through 1250 and beyond. Oil has dropped to start the week.

Regional equities:

  • Nikkei -1.37%
  • Shanghai +0.14%
  • HK -0.20%
  • ASX -0.17%