Free Trial

Friday's collapse of the OPEC+ talks is the...>

FOREX
FOREX: Friday's collapse of the OPEC+ talks is the main theme in early Asia-Pac
trade, hammering commodity-tied FX, with net crude exporters the
underperformers. WTI futs have briefly tested $30.00 before recovering past
$32.00. Crude pressured as BBG sources noted that Saudi signalled it will boost
crude output & slash prices to U.S., Asian & European customers. The krone
underperforms its G10 peers, with USD/NOK surging to best levels since 1985.
USD/CAD threatened to break above C$1.3600 as it rallied to levels not seen
since early 2019. USD/MXN sits ~8,000 pips higher, hitting new 3-year highs.
- The oil price crash has occurred at the time when the Covid-19 epidemic
continues to fuel underlying risk aversion, while North Korea is seemingly
test-launching ballistic missiles. USD/JPY showed under the Y104.00 mark. It was
last seen below that round figure in 2016. CHF also strongly bid, seeing fresh
multi-year lows vs. USD & EUR.
- EUR has benefitted from the continued re-pricing of global interest rate
exp./risk-off flows, owing to its "funder of choice" label in carry trades.
- Asia docket is Japan-centric with GDP (f), BoP & the Eco Watchers Survey due.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.