Asia FX Handover: Risk-Off Returns (Even If Mildly So)
Matt Simpson May 23, 2019 5:22 AM
A summary of news and snapshot of moves from today’s Asia session.
- It was a mild risk-off session although volatility remained contained overall. Japan’s manufacturing PMI slipped back into contraction at 49.6 (50.2 prior), before reports surfaced that Panasonic had halted shipments to Huawei and the US have been lobbying South Korea to also snub them.
- CHF and JPY are the strongest majors, allowing USD/JPY to break out of compression and NZD/JPY hit new lows. GBP, CAD and NZD are the weakest majors, with the British pound remaining broadly offered following renewed expectations of Theresa May’s resignation.
- Equities and index futures were mostly in the red, with CSI300 testing cycle lows and the Nikkei 225 presenting a potential dead cat bounce. And, as seen with the weaker CRB index, commodities remain under pressure with futures pointing lower and gold remaining on the back ropes.
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