Forex - GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)...


 11:22 (GMT) 14 Oct

  [Forex Highlights]

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RECAP CURRENCIES, DATA AND EVENTS

Regional Backdrop:

A partial trade deal between the U.S.-China has sparked a relief rally in Asian currencies at the start of the week. TWD was leading the pack, up by 0.83% against the greenback. Chinese currencies CNY and CNH were both up by 0.35% and 0.23% against USD. That was followed by KRW (+0.33%), PHP (+0.15%). SGD was up by 0.28% against USD. Other currencies including IDR, MYR, HKD, and INR were relatively stable. Thailand market was shut for market holiday.

Asia FX and News -

+ EU Said Johnson's Brexit Plan Not Good Enough Ahead of Summit

+ DUP's Dodds Says Proposed Brexit Deal Unrealistic ~ Repubblica

+ N.Z. Sept. Services Index Falls 0.2 Pts M/m to 54.4

+ Minor moves in FX as markets digest the mini trade deal. Markets welcomed the cooperation, but are not convinced that this could be the turning point for slowing global growth. USD, JPY and CHF stood firm. NZD/USD, which fell to test 0.63, was a notable loser and is likely to be flow-driven. AUD/USD capped under 0.68 following a failed attempt to rise above. USD/JPY came off Friday's high but is still firmly above 108. China's imports and exports were both below expectations, while the trade surplus was larger than expected. The yuan continues to strengthen. GBP/USD fell under 1.26 as weekend Brexit headlines pare back some expectations for a Brexit deal after the EU warning, but the dip has retraced partially.
Nikkei and JGBs -

+ Japan markets closed for Health-sports Day.

Europe FX and news

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-PNPP-C01)

+ The USD was broadly steady through the European morning, reversing initial gains against the EUR and losing ground against the JPY, but gaining ground against the commodity currencies as equity markets fell through the morning. USD and equity losses were extended on a Bloomberg report that China wanted more talks before accepting the phase one trade deal.

+ GBP fell back against both the USD and the EUR as prospects of a Brexit deal faded with the EU wanting more concessions and Johnson apparently pressing for a deal on the current terms.

+ Eurozone industrial production rose 0.4% in August, slightly more than expected, but fell 2.8% y/y, a slightly larger than expected decline.

Bonds and Equities

+ Eurozone debt rallied in early trading, as equities traded lower on concerns that the U.S./China mini trade deal is unlikely to build to something more substantive by November. The initial rally faded into mid-morning, but the tone is less negative than last week. The cash flow effect of the Fed's $60bln monthly permanent bill operations also provided some support, though traders know it is not QE4.

+ Gilts managed greater gains than Eurozone debt, as negotiations over a Northern Ireland arrangement between the UK and EU ran into problems Gilts will remain fluid, with some reports in Brussels that the EU is willing to have a last minute emergency summit on October 29-30.

US DATA

Today (Columbus Day) features no significant data releases.


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