Free Trial

Sentiment turned sour in the Asia.............>

FOREX
FOREX: Sentiment turned sour in the Asia afternoon, with participants concerned
with a surprise uptick in U.S. initial jobless claims and awaiting further
developments in Sino-U.S. diplomatic spat. BBG ran headlines confirming that
China asked the U.S. to close its consulate in Chengdu, as touted in earlier
press reports. USD/CNH punched above CNH7.0200, entering the CNH7.0256/96 zone
(Jul 14/8 highs) before the Chengdu headline hit. It eased off highs as China's
decision failed to represent the materialisation of a worst-case scenario. 
- The latest round of risk-off flows cemented JPY outperformance in G10 FX
space. The currency picked up a bid earlier in the session as USD/JPY dived
through a key support, provided by Jul 10 low of Y106.65, amid thinner
liquidity. Japanese markets remain shut for a public holiday. USD/JPY sales
drove a dip in DXY, which plunged to a 22-month low before ticking off there.
- AUD, NZD and CAD lost ground as concerns over Sino-U.S. tensions continued to
linger. GBP remained vulnerable on the back of familiar Brexit jitters.
- Focus moves to UK retail sales, U.S. new home sales and flash PMI readings
from the U.S., UK & EZ.

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.