Forex news for Asia trading Monday 18 May 2020
There was plenty of weekend news to prompt movement as markets opened
for the week, and more incoming with Federal Reserve Chair Powell
giving an interview to US TV show 60 Minutes that aired Sunday
evening in the US.
was, of course, the main focus and he had plenty to say on monetary
and fiscal policy (plus a lot more). His key message was the Fed
can, and will, do more if necessary (see bullets above – the post
on Powell’s remarks contains a link to the full transcript of the
interview if that is of interest). Gold was a big winner during the
session, adding to gains further as it rose above 1760; Powell’s
promise of loose policy doing it no harm at all. Silver perfomred
to the weekend news, for GBP is was negative. Bank of England Chief
Economist Haldane spoke on the Bank pondering negative rates and
other news indicated lack of progress on the Brexit negotiations
prospects. GBP opened lower in very early trade, circa 1.2075 but as
the Asian morning progressed it recovered back above 1.2100.
was a better session for currencies pretty much across the board.
There were the usual slew of US-China tension items about and they
did contribute to a little currency weakness early but these were
shrugged off as the morning ticked on. AUD, EUR, GBP (already noted),
NZD … all higher. CAD was a performer, with oil (WTI) above $30
for the first time in weeks CAD was a beneficiary. Unusually, there
was no awful news for oil out over the weekend.