Forex news for Asia trading Monday 25 March 2019
Politics to the fore today as the financial market week opened here in Asia.
- 1. Special Counsel Robert Mueller’s report was delivered to the US Congress, with a summary of findings issued by Attorney General William Barr. Yes, the report itself is not yet publicly available, just the four-page summary sent to the chairs and ranking members of the House and Senate Judiciary Committees. Bear in mind that the headlines come from this letter from Barr, but in a nutshell, the report found no collusion by Trump with Russia (its more complex than that, but, yeah, in a nutshell). There are plenty of other points and more questions to come. Not over. The initial market response was a move to US equity indices (Globex trade) and out of yen, but the moves were small indeed. These moves have since been reversed and then some.
- 2. Brexit. Of course. Weekend Brexit news and reports were familiar, UK PM May is being asked to resign by the usual Brexit hardliners, with talk also of Cabinet murmurings, but on the other hand support issued by other Cabinet members. This is politics, take it all with a grain of salt, May has proven so far to be a survivor, One thing to note that might make it all different this time is the UK Sun printing a front-page opinion piece demanding May resign. Cable is down a few points on the session.
More on Mueller and Brexit in the headline bullet links above.
Aside from politics, there was plenty of financial market-related developments to influence trade here today. Global growth concerns weighed on ‘risk’ in the back half of last week, intensifying on Friday and that sentiment carried through here today. Regional equities are lower, Japan, Hong Kong falling heavily. China shares were heavy also but not to the same extent. Gold has added a few dollars for the session.
USD/JPY has net declined during the session, from early highs circa 111.15. AUD fell a little but is, as I post, little net changed for the session. CAD ditto. EUR/USD, too, barely altered from late Friday levels.
ps. Check out the ECB Rehn post in the bullets above, Rehn clearly states there are plans for coordinated actions from the European Central Bank and the Bank of England in the case of volatile market moves in the event of a disorderly Brexit.
Still to come: