U.S. Fiscal Matters, Sino-U.S. Tensions At The Fore

The fiscal tug-of-war between Democrats and the White House garnered much attention over the weekend, as U.S. President Trump stepped in, signing four executive actions on coronavirus relief measures - extended unemployment support, student loan relief, payroll tax deferral, and protection against eviction. The decision drew criticisms from top Democratic lawmakers, who objected to the substance of the decrees and, joint by several Republican colleagues, cried foul over alleged executive overreach. Questions surrounding the legality of the POTUS' actions and no firm conclusion to the fiscal spat between the White House and the Democrats in sight keep participants in the dark.

• Spiralling U.S.-China tensions provide another source of worry, as Washington sanctioned 11 Chinese and HK officials, including HK Chief Executive Carrie Lam & China's top representative in the city Xia Baolong. At the same time, U.S. Health Sec Azar starts his visit to Taiwan, in another move that will further test U.S. relations with mainland Beijing.
• Coronavirus statistics are eyed with a sense of angst, as the number of confirmed cases in the U.S. topped 5mn, while Brazil's case count eclipsed 3mn.
• U.S. equity index futures slipped after the re-open and continue to operate in the red. T-Notes are range-bound, last trade +0-00+ at 139-31. Cash Tsys are closed until the London open.
• G10 FX witnessed some very mild risk-off flows, but all pairs are happy to hold tight ranges. JPY sits atop the pile & NZD underperforms at typing.
• Japan and Singapore observe public holidays today, which will limit liquidity in the region.
• Chinese inflation figures headline the regional calendar today.