Forex news for Asia trading
Friday 31 July 2020
Currencies moved higher
against the USD right after the US close as big tech firms (Apple,
Amazon, Facebook) announced beats on estimates, and there were
tentative signs from the White House they were working towards
getting the next round of stimulus passed.
currency moves soon stabilised but when the big 3 centres of Tokyo,
Singapore and Hong Kong became active the moves extended further
almost across the board (CAD was a laggard).
dropped from early highs around 104.80 to lows circa 104.20. On the way
down we had comments
out Japan’s Ministry of Finance, first from an official and then
later from the Minister Aso himself, saying
they sought FX ‘stability’, which is a coded way of saying the
yen is appreciating too quickly. This verbal intervention has had little
impact, though. As I update USD/JPY is on its session lows.
EUR, GBP, CHF all gained against the dollar. NZD did also but is a
little behind the others while USD/CAD is little net changed. Gold
spurted above $1,965 and is trying 1970 as I post.
news centred on continuing negotiations in Washington between Pelosi &
Schumer and Mnuchin & Meadows on the various matters making up the
next stimulus bill – extension of extra unemployment payments are
one of the key issues. Talks have concluded for the evening with the
usual non-committal sort of comments to media along the lines that
some progress had been made, there are still sticking points, and
there will be more talks to come (Friday and Saturday says Mnuchin).
the data front a couple of notable releases. Japanese industrial
production bounced m/m in June after the dismal drop in May. The
Japanese government upgraded its assessment for factory output,
saying it had bottomed. From China we got the official PMIs for July,
with a fifth consecutive
month of expansion for manufacturing and an expansion
services (albeit below
the consensus central estimate).