Forex and Bitcoin news for Asia trading Monday 23 July 2018
- PBOC added funds to China banking system today via MLF
- PBOC sets USD/ CNY reference rate for today at 6.7593 (vs. Friday at 6.7671)
- BOJ holds fixed-rate operation for first time since February
- More on the BOJ considering policy moves at the next meeting
- China Comm Min launches anti-dumping probe - EU, Japan, Sth Korea
- UK Times: No deal on Brexit risks civil unrest, says Amazon
- WSJ reports that Tesla has asked suppliers for a refund to help it turn profitable
- Canadian banks at risk of losing access to European currency exchange platform on Monday
- Barclays trade of the week is short USD/JPY
- What if Trump looks at the climbing USD and tweets he wants a managed exchange rate?
- Weekend: BOJ Gov Kuroda declined comment on side effects of monetary easing
- Japan MoF official says there was no flare up on currencies at the G20
- Front page of the FT features the EU (finance plan) Brexit rejection story
- Trade ideas thread - Monday 23 July 2018
- US Treas Sec Mnuchin on NAFTA: Hopes to get agreement negotiated in near future
- FT reports that the EU rejects UK’s financial services Brexit plan
- US Treasury Sec Mnuchin says had productive talks on balanced trade at G20
- Here is something a bit more indicative of the talks at the G20 meeting
- G20 finance ministers communique has a warning on risks to economies
- New UK Brexit negotiator says they may not pay divorce bill if no deal
- Accused Russian agent met with Treasury and Fed officials
- Some good news for the long-term gold bulls -- supply is getting tighter
- Video: One big risk to the Canadian economy has faded
On Friday Reuters reported BOJ policy setters were in "unusually active discussions" ahead of next week's (July 30 and 31) monetary policy meeting, with implications for potential changes to interest rate targets & asset-purchase programmes. JGB yield moved higher on Firay
Over the weekend BOJ Governor Kuroda said no: "I know absolutely nothing about the basis for those reports"
But in Tokyo morning trade JGB yields were higher again, and USD/JPY lower. Part of the currency move was a weaker USD (EUR and GBP ticked a little higher also) but the yen was an outperformer.
In addition to its regular, scheduled, JGB buying operation The Bank of Japan announced a bid for JGBs (5-10 yrs) of unlimited amounts at a fixed rate (see bullet above), effectively halting the yield gains. USD/JPY found a little support but the bounce was only small and its been sideways since.
The Chinese yuan was a mover also here today. USD/CNH fell further in early trade, retraced to be back more or less unchanged heading into the daily mid-rate setting by the People's Bank of China, before dropping again and retracing its loss, again. A couple of round trips for little net progress at all. The moves follow Friday reports of intervention to support the yuan.
EUR, GBP, AUD, NZD were not where the action was today. All are a little higher again vs. the USD and lower against the yen.
Still to come:
