Ranges (Up till 11.

59am HKT)
Currency

Currency

EURUSD

1.0600-51

EURJPY

130.57-79

USDJPY

122.745-123.26

EURGBP

0.69935-0.7008

GBPUSD

1.05160-96

USDSGD

1.4130-87

USDCHF
AUDUSD

1.01861.0217
0.7159-0.72549

USDTHB
USDKRW

35.72-835
1154.4-1159.6

NZDUSD

0.6503-80

USDTWD

32.555-615

USDCAD

1.3326-97

USDCNH

6.4168-6.4357

AUDNZD

1.1015-58

XAU

1068.0-1076.8

Key Headlines

People are so excited about this Fed meeting

today at 11.30am EST. Some have pinned the
Usd strength to the meeting.

With HKMA defending 7.7500 UsdHkd and

forward markets in favour of Usd, some easymoney punters are getting long UsdHkd
hoping there is no repeat of Jan 15 2015.

FX Flows
It was a slow opening for the week, and got exciting
when Asia came in.

Fall in Aud and also in oil futures sent UsdCad towards

1.34-handle; high 1.3397. Offers are light unless we get to
1.3420s where things get better. Rates are saying
UsdCad is fair value, especially near 1.3340-50. Best to
watch the oil price.

Asians
Fall in the Hkd forward points over the past 1 week has
attracted easy-money punters. Betting on HKMA firmly
at 7.7500, these speculators are buying spot UsdHkd and
swapping out more than 6 months. Lets hope there is no
repeat of Jan 15 2015.
Offshore Yuan weakened to 6.4357 after the CNY fix.
North Asia names were selling USDCNH into rally and
international were buyers. Remember those doomsayers
who talked about this 6.4 linking the number to June 4
even in Beijing? No picture, no sound.

Who said what

Fed Res published on its web that there will be a close

meeting today at 11.30am EST to discuss (according to
the page) - Review and determination by the Board of
Governors of the advance and discount rates to be
charged by the Federal Reserve Banks. Some said this is
not a policy meeting but there will be discussion on
differences.
Apparently some have linked the price action on this Fed
meeting. US dollar demand was strong but at same time,
so were the obstacles.
Move started when Asia walked in, EurUsd drifted lower
and ran into good bids below 1.0630, planted in the
main platform. I hear bids are all the way to 1.0600,
defending this 1.0600-option barrier. I hear stop sell
orders are under the figure zone.
It is a Japan holiday and UsdJpy chewed through layers
of offers into this 123.00-05. We see offers in machine
lined up into this 123.20s and heard stops above 123.50.
There were bids surrounding 0.7200 in AudUsd but
supply proved better. AudUsd traded down to 0.7158,
dragged the AudNzd cross to 1.1019. Our trader Sam is
still maintaining his long position in AudNzd. He
suggests adding long 1.1010-20, the 100-day SMA comes
in at 1.1010.

China and Malaysia plan to raise bilateral trade

to US$160bn by 2016
China Li: Expects economy to grow 7% this year
Guotai Junan shares fell 14% after its chairman
cannot be contacted.
China announces new RQFII investment quota
for Malaysia
China to offer Malaysia QFII quota of up to
Yuan50bn

News
FT: Cameron diverts 12bn to fortify Britain
against Isis and Russia
David Cameron will today pump an extra 12bn into
strengthening Britains defences against Isis and Russia,
but the bill will be met by spending cuts elsewhere with
police, welfare and business grants in the line of fire. Mr
Cameron will set out a five-year defence review with a
focus on tackling Isis, including a 30 per cent increase in
the counter-terrorism budget, 2bn on special forces and
a new emphasis on cyber defences. A 12bn increase in
the budget for defence kit over the next decade will take
total spending to 178bn and will include funding for
nine Boeing maritime surveillance aircraft to take on a
potential Russian submarine threat.
http://www.ft.com/intl/cms/s/0/afc47f70-9137-11e5bd82-c1fb87bef7af.html#axzz3sGfrILe3
AFR: Iron ore bear Andy Xie tips price to fall
below $US40 this year
Iron ore bear Andy Xie is sticking to his guns. The price
will drop below $US40 a tonne before year-end, and
trade in the $US30s in 2016 as demand in China
sputters, according to Xie, an independent economist
who's predicted a collapse since at least 2012. Mills in

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.

China will cut output and high-cost iron ore miners will
go under, he said in an interview. "The steel industry is
reaching a critical point," said Xie, a former Asia-Pacific
chief economist at Morgan Stanley. "They'll have to cut
production," said Xie, who forecast in February when
iron ore was in the $US60s that prices would drop
below $US40 this year. It ended at $US44.91 last week,
the lowest since July.
http://www.afr.com/markets/commodities/metals/iron
-ore-bear-andy-xie-tips-price-to-fall-below-us40-thisyear-20151123-gl5e0i#ixzz3sHZF7JX0
WSJ: Pensions Private-Equity Mystery - the Full
Cost
For years, officials who oversee retirements for teachers,
firefighters and other government workers said they
failed to either ask or disclose how much private-equity
firms kept in performance fees, the biggest source of
profits for outside money managers. Now, pension funds
from New York to California are doing those calculations
and revealing much bigger sums than they had ever
made public. The size of the expenses could mean
tougher scrutiny of private-equity investments and more
pressure to cut back those holdings or negotiate lower
fees. The California Public Employees Retirement
System is expected to announce this week that it paid
private-equity firms billions of dollars more over the past
17 years than it had previously disclosed, according to
people familiar with the situation.
http://www.wsj.com/articles/pensions-private-equitymystery-the-full-cost-1448235489?
mod=wsj_nview_latest
WSJ: Canadas Energy-Rich Alberta to Cap Oil
Sands Emissions
The government of oil-rich Alberta province in western
Canada on Sunday pledged to phase out coal emissions
by 2030, limit greenhouse gases from oil-sands
production and implement an economy-wide carbon tax.
The province unveiled the long-awaited plan one day
ahead of a meeting in Ottawa among Prime Minister
Justin Trudeau, Alberta Premier Rachel Notley, and the
leaders of other Canadian provinces and territories to
discuss environment policy. Mr. Trudeau has pledged to
develop a framework for reducing greenhouse-gas
emissions before a United Nations summit on Nov. 30.
The plan comes at a challenging time for coal and oil
producers in western Canada that are struggling to cope
with low commodity prices.
http://www.wsj.com/articles/canadas-energy-richalberta-to-cap-oil-sands-emissions-1448231231?
mod=wsj_nview_latest

The governments fixation on the size of the state is

straining vital public services and undermining social
stability, according to a report from the TUC, which
argues that further cuts could damage the economy. The
study commissioned from the Fabian Society suggests
that spending cuts under the coalition have undermined
essential services in health and education, lengthened
NHS waiting times, deprived half a million adults of
social care and brought the closure of hundreds of Sure
Start centres for children.
http://www.theguardian.com/politics/2015/nov/23/pu
blic-spending-cuts-tuc-report-services-shrinking-stateautumn-statement?CMP=twt_gu
FT: Brussels faces third day of lockdown amid
terror fears
The city of Brussels will endure a third day under a
security lockdown on Monday, after the prime minister
said that the risk of a Paris-style attack remained
serious and imminent. Charles Michel said the
authorities had credible intelligence that several jihadis
were planning an assault in the city, possibly using guns
and explosives in simultaneous attacks. He announced
the closure of schools and the metro system.
http://www.ft.com/intl/cms/s/0/0a5fc5cc-9113-11e594e6-c5413829caa5.html#slide0
SCMP: Chinas Guotai Junan International
Holdings chief missing as stocks slide 16pc
Guotai Junan International Holdings shares slid 16 per
cent to HK$2.73 by 10:15 am on Monday after the
company announced that its chairman has been missing
since last Wednesday. The Company has been unable to
reach Dr. Yim Fung (Dr. Yim), Chairman of the Board,
Executive Director and Chief Executive Officer of the
Company since 18 November 2015, said the Hong
Kong-listed unit of Guotai Junan Securities, one of
mainland Chinas largest financial firms. in a filing to the
Hong Kong stock exchange on Monday morning.
http://www.scmp.com/business/companies/article/188
1926/market-rout-chinas-guotai-junan-internationalholdings-chief

Guardian: More spending cuts will damage

economy, TUC report warns
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.