Forex and Bitcoin news for Asia trading Friday 9 March 2018
- PBOC’s Zhou says central bank doesn’t recognise Bitcoin as payment tool
- BOJ announce no change to monetary policy
- On the HKD (ICYMI)
- Yen lower on North Korea relief, but topside likely limited
- China CPI February: 2.9% y/y (vs. expected 2.5%) PPI 3.7% y/y (3.8%)
- Japan defence minister says North Korea must abandon all nuclear development
- Japan — Overall Household Spending for January: +2.0% y/y (vs. expected -1.0%)
- Central Reserve Bank of Peru cuts reference rate
- French Fin Min on tariffs: Will assess consequences, agree appropriate response
- More from BoC’s Lane — on link between uncertainty and current policy stance
- Trade ideas thread — Friday 9 March 2018
- NZ data from earlier — Card Spending -0.3% m/m (vs. expected +0.1%)
Politics to centre stage yet again, with the US tariff announcement/signing (US afternoon news), followed by the announcement on North Korea. The North Korea announcement was pre-empted with clear guidance on what to expect:
- Announcement due on North Korea at top of hour — here is what it is!
The yen started sliding, stabilising around 106.40 before the confirmation came with the statements from South Korean National Security Adviser, speaking from the White House:
- North Korea news crossing now — NK said to suspend missile tests
USD/JPY steadied for a few minutes after and then took off for another leg higher, halting its advance just ahead of the 107 big figure.
Apart from the NK news we got data from China; inflation and financing, both looking to have been impacted by Lunar new Year distortions. And a sharp devaluation or the onshore yuan from the PBOC.
The Bank of Japan statement from its March monetary policy meeting followed, with no change to policy, no change to outlook and, for a hat trick of ‘as expected’ a dissent from Kataoka (he wants the Bank to do MOAR!!!).
After the BOJ the yen is little changed, its backed off from the earlier high (circa 106.94).
Other currencies … not a lot to report really. EUR/USD dipped briefly under 1.2300, USD/CHF seemed to benefit from the decline in risk aversion associated with North Korea developments, slightly higher. Cable is little changed at all. As are, AUD, NZD and CAD (USD/CAD had fallen late US time but tracked around 1.2900 for much of Asia so far, dipping towards 1.2880 early and coming back).
Gold is down a little on the session, as fits with other developments. BTC has lost a little ground on the session.
Still to come:
- Its not all about the US NFP on Friday — UK data inputs to Q1 GDP coming soon
- US data Friday — previews of the nonfarm payroll for February
- Goldman Sachs NFP preview
Oh, and a ps — US moves onto daylight saving on Sunday — traders of US markets take note!