Forex news for Asia trading Monday 9 January 2017

  • Brexit - UK press: Businesses to face extra £10 billion per year bill over Brexit pension deficits
  • Citi: "A huuuge USD move ahead" - EUR/USD to 0.9 & USD/JPY to 130 on US stimulus
  • Overnight yuan HIBOR fixed at 14.05% today (Friday's was a bazillion % or something)
  • Here's why SG says the USD will peak 99 days after Trump's inauguration
  • Former PBOC adviser: Cannot let yuan weaken against USD by more than 25% in 2017
  • Potential Fed Chairs Suggest They Would Pursue Tighter Policy
  • PBOC's Fan Gang: Policy makers not likely to add more capital outflow curbs
  • In London? Take a day off work (tube on strike Monday)
  • China’s foreign currency reserves fell for a sixth month in December
  • USD, EUR, JPY, GBP, CHF, CAD, AUD, NZD: Weekly Outlook
  • Waiting on China inflation data?
  • PBOC sets USD/CNY central rate at 6.9262 (vs. Friday at 6.8668)
  • Australia Building Approvals (Nov): +7.0% m/m (expected +4.5%, prior -12.6%)
  • China on bitcoin - stop using it to bypass capital controls
  • (More) China - Hebei plans to cut iron and steel capacity by 32m tons
  • US: "Rising REITs back bets on stronger economy"
  • China press reports that Hebei plans to cut iron and steel capacity by 32m tons
  • Japan is on holiday today
  • Brexit - GBP/USD update
  • AUD/USD chart update
  • Australia data - December construction PMI: 47.0 (prior 46.6)
  • Trade ideas thread - Monday 9 January 2017
  • Germany's Vice Chancellor Gabriel says EU break-up no longer unthinkable
  • Westpac on the AUD - capped at 0.7450/0.75 & "One tweet away from a tumble"
  • Brexit - GBP update (or downdate I suppose)
  • Australian govt. forecasts record export earnings in 2016/17, iron ore price to fall
  • Monday morning FX - early price indications

Weekend:

  • How to trade when you have solid technical support
  • A quick look at 18 things to watch on the economic calendar this week
  • If Jean-Claude Juncker could say what he really wants
  • Brexit - Scotland's Sturgeon warns May that she's "not bluffing" on the promise of a second independence referendum
  • Trump says he is "very much" looking forward to meeting UK's May
  • 2017 is a lot like 2016 so far at the top of the FX leaderboard
  • China's FX reserves end-Dec USD 3.011trln vs USD 3.052trln prev
  • US intel report says Putin directed cyber campaign aimed at helping Trump
  • Fed's Kaplan: Doesn't want to prejudge whether Trump policies will boost or harm growth

The 'hard' Brexit option got more wind in its sails over the weekend, at least as far as the market was concerned with remarks from May and Sturgeon (see bullets above). I posted in the 'early updates' first thing today on the lower GBP and, after a bit of a 'gap cover' retracement it lost ground again to be near session lows as I update... and extending to new session lows.

It was a Japanese market holiday today, but that didn't seem to hinder yen moves, USD/JPY extended its Friday NFP rally with USD/JPY toward 117.50. With the Japanese holiday, news and data Japan was basically zilch.

(Tech gremlins resulted in the wrong chart earlier ... replaced now ...):

In other currencies:

  • AUD/USD ticked a little higher from late Friday levels. Building approvals data (November) didn't have much of an impact (they showed little of much surprise, registering a small beat on expectations). AUD/USD has trickled back off a little from ahead of 0.7330 selling.
  • NZD/USD played out a similar sort of pattern to the AUD, up small but backing off a little since.
  • EUR/USD had a little pop over 1.0540 and is since back to opening sort of levels.
  • USD/CHF is testing its (very small range) session high as I update.

Gold and oil are not too much changed on the session.

Regional equities:

  • Nikkei -0.34%
  • Shanghai +0.56%
  • HK +0.04%
  • ASX +0.97%

Still to come:

  • A quick look at 18 things to watch on the economic calendar this week