Forex - Asia Highlights - Friday, 15 March 2019


 05:34 (GMT) 15 Mar

  [Forex Highlights]

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Asia Highlights - Friday, 15 March 2019 (0101-JQSJ-C01)

US Overview:

A generally quiet day was seen with UK Brexit votes causing little volatility, PM May getting a motion allowing a Brexit delay through (after narrowly defeating an amendment that would have given parliament more control over the process).

US Highlights:

- US Feb import prices +0.6% vs 0.3% exp.

- US initial claims rose to 229k from 223k vs 225k exp.

- US Jan new home sales -6.9% to 607k vs 622k exp.

Currencies:
GBP/USD started the European session strong but peaked before 9:00 GMT and subsequently softened back to Tuesday close levels near 1.32, pulling EUR/USD down with it. Cable traded on the 1.32 handle for the rest of the day. A lift in the pound from a government motion approving a short delay to Brexit passed that by a comfortable 412-202 did not last long. Earlier, an amendment to give Parliament control of the process had been defeated by a marginal 314-212. A third attempt at passing May's deal is expected, and the chances of it passing, while significant, are probably less than 50%. If the choices are restricted to either May's deal or a longer delay, it is seen as mildly positive for GBP.
AUD and other higher yielders fell back in the late European morning on a Bloomberg report that the Trump-Xi meeting had been delayed until April. USD/JPY dipped as well, but the moves were quite modest. USD/JPY eventually touched a high of 111.83 in response to a rise in UST yields. There was little reaction to comments from Trump in which he indicated talks with China were going well but said a final deal wasn't certain, and threatened tariffs on the EU if they refused to talk.
Final German CPI was slightly weaker than expected in February at 1.5%, but in line with expectations on an HICP basis at 1.7%. French HICP revised up slightly to 1.6% y/y. EUR/USD remained tight to 1.13.

Asia FX and News:
-Brexiteer MPs Reject New Legal Advice on Backstop ~ Telegraph
-Trump Said He'll Have News on China Trade Deal in Next 3-4 Weeks
-BoC Wilkins: High Household Debt Is Canada's Biggest Vulnerability
-Japan's Aso: Being Too Focused on 2 Percent Could Be Problematic
-China Foreign Investment Law to Take Effect Jan. 1, 2020: Xinhua
-The BoJ expectedly left policy framework unchanged and the statement reflected a less positive take on the economy amid weakening exports. These are as most have expected, hence only saw the yen recovering the modest losses prior to the announcement. Yen further lifted on report that N.Korea is considering to suspend nuclear talks but yen moves has since been reverted. CHF also saw safe have bids on the N.Korea news, USD/CHF fell to week's low. The commodities trio lead the G10 as sentiment in the market received a lift from China's plans for tax cuts and promised to provide targeted stimulus to prop the economy. Kiwi initially higher on better than expected mfg PMI. GBP had a subdued session in Asia, Cable steadied at 1.3240. EUR/USD inches higher with USD broadly softer.

Data:

NZ: Business NZ Manufacturing PMI (Feb) 53.7 index (Prev: 53.0R)

NZ: External Migration (sa) (Jan) 6300 (Prev: 6880R)

JP: BoJ 10yr Yield Target (15 Mar) 0.000% (Mkt: 0.000 Prev: 0.000)

JP: BoJ MPC - Overnight Rate (15 Mar) -0.100% (Mkt: -0.100 Prev: -0.100)

NL: Retail Trade (Jan) 2.7% y/y (Prev: 0.9)

Still To Be Released -

Data:

06:30 GMT - NL: Trade Balance (Jan) bn (Mkt: 3.6 Prev: 3.7)

07:00 GMT - DE: Wholesale Price Index (Feb) % m/m (Prev: -0.7)

07:00 GMT - DE: Wholesale Price Index (Feb) % y/y (Prev: 1.1)

08:00 GMT - AT: CPI (Feb) % m/m (Prev: -0.8)

08:00 GMT - AT: CPI (Feb) % y/y (Prev: 1.7)

08:00 GMT - FI: GDP (Jan) % (Prev: 2.7)

08:00 GMT - NO: Trade Balance (Feb) NOK bn (Prev: 28.8)

10:00 GMT - IT: Industrial Orders (Jan) % m/m (Prev: -1.8)

10:00 GMT - IT: Industrial Orders (Jan) % y/y (Prev: -5.3)

11:00 GMT - EU: CPI (Feb) % m/m (Mkt: 0.3 Prev: -1)

11:00 GMT - EU: CPI (Feb F) 4cast:1.5 %y/y (Mkt: 1.5 Prev: 1.4)

11:00 GMT - EU: HICP - Core (Feb F) 4cast: 1% y/y (Mkt: 1 Prev: 1)

11:00 GMT - IT: HICP (Feb F) % y/y (Mkt: 1.2 Prev: 1.2)

12:30 GMT - CA: Manufacturing sales (Jan) 4cast: 0.3% m/m (Mkt: 0.4 Prev: -1.3)

12:30 GMT - US: Empire State Survey (Mar) (Mkt: 10 Prev: 8.8)

13:00 GMT - CA: Existing Home Sales (Feb) % m/m (Mkt: -4 Prev: 3.6)

13:15 GMT - US: Capacity Utilization (Feb) 4cast: 78.1% (Mkt: 78.5 Prev: 78.2)

13:15 GMT - US: Industrial Production (Feb) 4cast: 0% m/m (Mkt: 0.4 Prev: -0.6)

14:00 GMT - US: Univ of Mich Sentiment (Mar P) (Mkt: 95.7 Prev: 93.8)

21:00 GMT - US: Net Long-term TICS Flows (Jan) USD bn (Prev: -48.3)

Events & Auctions:

22:50 GMT - CA: Bank of Canada's Wilkins speaks

02:30 GMT - JP: BoJ's Kuroda speaks in Tokyo

11:00 GMT - UK: 182-day Bills Auction (GBP 2bn)

11:00 GMT - UK: 28-day Bills Auction (GBP 2bn)

11:00 GMT - UK: 91-day Bills Auction (GBP 2bn)

15:40 GMT - UK: BoE's Held speaks in New York


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