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Ranges (Up Till 11.40am HKT) : Currency Currency
Ranges (Up Till 11.40am HKT) : Currency Currency
40am HKT)
Currency
Currency
EURUSD
1.0969-1.1015
EURJPY
135.78-136.00
USDJPY
123.43-84
EURGBP
0.70685-96
GBPUSD
1.5509-39
USDSGD
1.3681-1.3737
USDCHF
AUDUSD
0.9598-0.9625
0.7264-99
USDTHB
USDKRW
34.81-90
1065.5-1073.8
NZDUSD
0.6566-0.6604
USDTWD
31.446-660
USDCAD
1.3024-50
USDCNH
6.2094-6.2263
AUDNZD
1.1046-75
XAU
1094.7-1099.1
Key Headlines
US dollar was softer this morning on back of monthend selling only pair that went higher was UsdMyr.
Creditors are supposed to return to Athens and talks to
kick off on Tuesday but chances are slim. Former Greek
Finance Minister Varoufakis claim of Plan B isnt going
to look good for PM Tsipras.
Topic of Yuan band widening after last weeks opinion
from State Council. Some banks have begun to forecasts
band widening in Sept.
Interesting comment from The Economist...The failed
nuclear deal with North Korea was four pages long. The
Iran deal is well over 100!
FX Flows
Extremely slow start to the week for FX overall, Usd
ended up softer on back of month-end selling.
Eur$ traded 1.0969 low where reports of bids are said to
be at 1.0940-50. Usd weakness sent Euro towards 1.10handle offers have been light. 100-day SMA at 1.1005,
hence we expect sellers above that. One gossip of stops at
1.1020 but I doubt the credibility. Sell orders should be
scattered up to 1.1050 and decent stops above 1.1060.
Creditors are supposed to return to Athens and talks to
kick off on Tuesday but chances are slim.
Japanese were better sellers after the Tokyo fix, said to
be for month end supply and with Nikkei remaining in
negative, UsdJpy was offered throughout the day. Keep
an eye on 123.35, I heard good stops planted there.
Offers are at 123.85 up to 124.10.
Softer Usd pushed the Aud and Nzd towards the high
side of range. Heard that Aud bids from 0.7230, decent
at 0.7210. Offers are light up at 0.7300 (high 0.7297).
Likewise, high in Kiwi is 0.6604 and some talk of offers
in Kiwi above 0.6600.
Asians
Usd/Asia was bid at open but most turned lower as we
moved towards the end of morning session. The UsdMyr
is probably the only pair that stayed firm throughout the
session and I think it is linked to domestic issues.
UsdMyr opened higher. The agent banks were reported
at 3.8120, from last weeks 3.8080. Pressure on Myr
continued into late morning; heard agent banks lifted
their offers up to 3.8150. Economic data is light this
week and politics remain tense. Couple of interesting
news articles. In The Malaysian Insider, DPM
Muhyiddin said PM Najib must answer to WSJs
allegations on funds transfer. In WSJ, a report on palm
oil migrant workers revealing abuses and onerous
working conditions. This WSJ report is likely to add a
bigger hurdle to the Trans-Pacific Partnership
negotiations.
UsdKrw opened at 1070.0 in the onshore market and
Usd stayed bid amid a defensive Korea Composite Index.
Only worthy data out this week is the June industrial
production numbers on Friday. In todays Nikkei report,
Chris Williamson, chief economist at Markit said PMI
numbers paint a troubling picture for South Korea. Into
mid-morning, UsdKrw turned lower. Our trader believes
it is selling from exporters that pushed Usd to 1166.90
low.
UsdThb started at 34.90, slow drifted to 34.81. Selling
from offshore has instigated some profit taking from
onshore.
Another CNY fix on this 6.11-handle making it 34consecutive days. Onshore spot was fairly stable and
USDCNH shifted lower to 6.2200. Topic of Yuan band
widening after last weeks opinion from State Council.
Some banks have begun to forecasts band widening in
Sept.
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.
These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.
http://www.wsj.com/articles/chinas-gsr-venturesplans-5-billion-fund-for-overseas-tech-acquisitions1437909282
SCMP: Beijing widening of yuan trading band
aimed at IMF, pushes for market reforms
Chinas decision to widen the yuans trading band
marked Beijings latest efforts to push ahead with market
reforms to increase its chance of being included in the
IMFs currency basket later this year despite the
backdrop of a weakening economy. The wider band is
believed linked to the IMFs review on the Special
Drawing Right basket later this year as China considers
it a priority to be added in a reserve currency basket that
currently only includes the US dollar, euro, yen and the
sterling in tacit recognition of its status as the worlds
second largest economy.
http://www.scmp.com/business/markets/article/18437
71/beijing-widening-yuan-trading-band-aimed-imfpushes-market-reforms
SCMP: The US$26 trillion debt problem that is
crushing competitiveness in China
China owes its stock market boom and bust to the one
thing that is crushing the competitiveness of every part
of the world's second biggest economy - debt. The
nation's debt mountain is widely estimated to top 250
per cent of gross domestic product, roughly equivalent to
US$26 trillion, and is unlikely to peak before 2018.
http://www.scmp.com/business/markets/article/18437
75/us26-trillion-debt-problem-crushingcompetitiveness-china
ECNS: Pension fund poised for riskier
investment
China will allow its pension fund to tap into riskier asset
investments once top policymakers approve the plan, a
senior official said on Friday. The draft plan, supported
by a majority of the public, would allow the country's
basic pension fund to be invested in new channels,
including domestic stock markets, but cap the maximum
proportion of investment in stocks and equities at 30
percent of the fund's total net assets.
http://www.ecns.cn/business/2015/07-25/174465.shtml