FX Brief: Trump Turns His Ire To Bitcoin

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

  • In late night tweets, President Trump took on Bitcoin saying he’s “not a fan” and its value is “based on thin air”. Getting to the specifics, Facebook’s Libra “will have little standing or dependability”, adding they’ll need to seek a new Banking Charter and be subject to “all banking regulation”. Bitcoin initially rose on the tweet but pared gains.
  • US have said they will not blacklist Iran’s Foreign Minister ‘for now’.
  • CHF and AUD are currently the strongest majors, NZD and USD are the weakest.
  • Singapore’s GDP more than missed expectations by crashing -3.4% YoY versus 0.1% expected, fanning fears that Singapore could be headed for a technical recession.
  • A mixed picture among equities with the CS300 leading Chinese indices higher, although the ASX200 and Topix are slightly down for the session.  

Up Next:

  • Chinese trade figures are up within a couple of hours (although times do vary) which could shed further light on the impact of the US-Sino trade war. Exports are expected to fall due to lower global demand. Imports (and proxy for global exports) put AUD and NZD on the radar, as they’re key trader partners with China.
  • European industrial production is expected to drop to -1.6% yoy, which is quite a stretch from -0.4% prior. Perhaps this leaves some wriggle room for an upside surprise (ie not bad as feared) but, given soft data from Germany of late, it could weigh on Euro if it exceeds bearish expectations
  • US producer prices generally take second place to inflation data (which slightly beat expectations yesterday) but expectations are for them to slightly soften, which is plausible given they appear to have topped in December.   

Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.