Asia FX Handover: Cautious Trade Ahead Of NFP
Matt Simpson June 7, 2019 5:14 AM
- FX markets were typically quiet ahead of today’s NFP report, although volumes were lower than usual due to a public holiday in China. CAD is currently the strongest major, NZD and JPY are the weakest.
- Asian equities were mostly higher on the back of thawing trade tensions.
- Whilst markets may have be quiet, Trump was less so on Fox and Friends, claiming ‘I’ll definitely get a deal with China’ and the US markets would be ’10,000 points higher’ were it not for the Fed.
- WTI traders near yesterday’s highs following its most bullish session since mid-January. Gold is coiling at the highs after its elongated pinbar below the 2019 highs.
- Mike Pence: Mexico must take decisive action on immigration to avoid tariffs. But will ultimately be up to Trump to decide whether to move forward with them. Talks with Mexico to continue in the coming days.
- USD/CNH moved higher following a Bloomberg interview where PBOC governor said China has ‘lots of policy room if trade war worsens’. This is after a former PBOC governor said publicly that their currency is no longer forbidden from dropping through Y7.
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