From the FXWW Chatroom: Except for the UsdJpy and UsdKrw, the greenback was generally weaker across the board, Eur and Cable printing session’s high as I write.
New Zealand Finance Minister Grant Robertson and incoming Reserve Bank Governor Adrian Orr signed new Policy Targets Agreement this morning. The RBNZ will conduct policy view on labour outcomes. The Finance Minister also announced creation of MPC of 5-7 members chaired by RBNZ Governor. The MPC will start in 2019.
New Zealand Feb trade turned to surplus Nzd217mio but Jan’s deficit revised to –Nzd655mio from –Nzd566mio. NzdUsd did so little. Buyers are reported below 0.7200. Kiwi climbed to 0.7258 on back of softer Usd
One US name was seen selling UsdJpy at the open 104.74, believed to be on back of Abe’s approval rating which dropped to 42% from 56% according to Nikkei Poll. However, UsdJpy only managed 104.56 low. Bids are reported 104.50’s, although we saw little interests in the platforms when we were down there. UsdJpy traded higher and revisited 105.06. Positive US equity futures plus Nikkei paring earlier loss seen aiding UsdJpy. Do note there is $1.2bn worth of 105.00 strikes mature today New York cut. Beyond 105.00, stops are located after 105.25.
New Zealand Finance Minister Grant Robertson and incoming Reserve Bank Governor Adrian Orr signed new Policy Targets Agreement this morning. The RBNZ will conduct policy view on labour outcomes. The Finance Minister also announced creation of MPC of 5-7 members chaired by RBNZ Governor. The MPC will start in 2019.
New Zealand Feb trade turned to surplus Nzd217mio but Jan’s deficit revised to –Nzd655mio from –Nzd566mio. NzdUsd did so little. Buyers are reported below 0.7200. Kiwi climbed to 0.7258 on back of softer Usd
One US name was seen selling UsdJpy at the open 104.74, believed to be on back of Abe’s approval rating which dropped to 42% from 56% according to Nikkei Poll. However, UsdJpy only managed 104.56 low. Bids are reported 104.50’s, although we saw little interests in the platforms when we were down there. UsdJpy traded higher and revisited 105.06. Positive US equity futures plus Nikkei paring earlier loss seen aiding UsdJpy. Do note there is $1.2bn worth of 105.00 strikes mature today New York cut. Beyond 105.00, stops are located after 105.25.
GbpUsd had a very dull start, sat around 1.4135 for close to 3 hours. Market started moving up as Japanese walked in. Was paid again by Tokyo names for GbpJpy as the GbpUsd printed 1.4162. The Sunday Times wrote a rise in May looks pretty much baked in, following the stronger wage figures and the agreement on a 21-month Brexit transition deal between Britain and the EU. Two members of the Bank’s monetary policy committee voted for an increase last week.
EurUsd climbed slowly towards a small resistance at 1.2375, one fat finger printed 1.2388. Offers are mentioned atop 1.2400, linked to an option strike there total Eur2.6bn mature this week. Move back to 1.2310-20 should attract buyers.
Gold closed at 1348.00 last Friday, traded up to 1350.50, I suspect someone had attempted to trigger stops but must have met with someone stronger. The precious metal backed off very quickly to 1345.7..
EurUsd climbed slowly towards a small resistance at 1.2375, one fat finger printed 1.2388. Offers are mentioned atop 1.2400, linked to an option strike there total Eur2.6bn mature this week. Move back to 1.2310-20 should attract buyers.
Gold closed at 1348.00 last Friday, traded up to 1350.50, I suspect someone had attempted to trigger stops but must have met with someone stronger. The precious metal backed off very quickly to 1345.7..
EM
The South African Rand opened up stronger, the pair closed last Friday at 11.75, traded down to 11.64. Late Friday, Moody’s affirmed SA credit rating and revised the outlook to stable from negative. The agency had originally put SA on review for downgrade back in Nov 2017.
UsdKrw opened at 1082 and backed off straight away to 1079. Last Friday, US officials exempted South Korea from tariffs on steel and aluminium. They also said they are close to a deal with South Korea on amending KORUS agreement. Please note that the 1-month NDF points widened to -3 Krw.
View the latest market information in the FXWW Chatroom with a free trial.