FX Handover: FOMC Dominates Markets During A Lively Asia Session
Matt Simpson June 20, 2019 5:01 AM
A summary of news and snapshot of moves from today’s Asia session.
- The dovish FOMC meeting continued to weigh on the US dollar throughout Asia, seeing USD/JPY drop to its lowest level since the January flash crash.
- RBA’s Lowe hammered home the likelihood of another cut, saying it’s unrealistic to think 25bps cut can alter growth, it’s not unrealistic to expect a further reduction in cash rate and the possibility of a lower cash rate remain on the table.
- Australian yields hit fresh record lows with the AU2 and 10yr yields falling to 0.93% and 1.29% respectively. The ASX200 pushed to a fresh post-GFC high and hones-in on the all-time high.
- AUDNZD fell to its lowest level since early April. Better than expected GDP data from NZD and expectation for RBNZ to hold next week have weighed on the cross.
- Asian caught the tailwind from the FOMC meeting, trading mostly higher led by Singapore and Hong Kong.
- Gold is on track for tis most bullish week in 3 years, after spiking higher to $1392, its highest level in five years.
- Trump is to meet with Putin at the G20 meeting next week.
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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.