Market Brief: Trump Blasts Democrats For Their Latest "Witch Hunt"

A summary of news and snapshot of moves from today’s Asia session.

FX Brief:·         

  • Inflation in Tokyo fell to a 16-month low, adding calls for more stimulus from BoJ at their upcoming meeting.
    The four largest banks in Australia are now calling for RBA to cut next week to 75 bps. The ASX implied yield curve suggests around an 80% chance of a cut on Tuesday.
  • AUD and GBP are currently the strongest majors, CHF is the weakest. Ranges are narrow overall with none of the pairs we track coming close to testing their typical daily ranges.
  • Traders will want to keep a close eye on where EUR/USD closes the week. Currently testing a key support trendline above 1.0900, a close above 1.0930 could suggest downside a bear-trap, at least over the near-term.
  • Britain will be to blame if no Brexit deal is reached, according to EU’s Juncker.
  • China’s top diplomat is saying that Beijing is willing to buy more products from the US.

Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.

Equity Brief:

  • Trump has blasted Democrats for their latest “witch hunt” and spent the night tweeting clips from Fox News which aim to undermine the impeachment proceedings. Asian equities fell to a 3-week low following the release of the Trump whistleblower complaint.
  • The Nikkei 225 fell through the July highs to a 9-session low and currently trades -1.17% for the day.  The ASX200 diverged and looks set to close higher for the session.
  • US futures have opened slightly lower (ranging between –0.12% to -0.22%)
  • BMW have ‘no interest’ in settling with EU antitrust authorities, after being accused of colluding with Daimler and Volkswagen to block the rollout of cleaner emission technology between 2006 – 2014.
  • Toyota are to increase their stake in Subaru to over 20%, according to sources. Separately, Toyota are also planning to develop hydrogen fuelled cars with their Chinese partner FAW Group and Guangzhou Automobile Group.
  • Huawei are claiming to have begun production of 5G base stations without US parts, a move which is likely to irk president Trump.

Up Next

  • No top tier economic data today means we could be in for a fairly quiet session. Unless of course Trump wants to stir things up, or the impeachment headlines begin to make a larger impact.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account