Free Trial

Virtual Summit Aids Redback, Dents Safe Havens

FOREX

The first face-to-face virtual summit between U.S. Pres Biden and China's Pres Xi inspired some cautious optimism, sapping strength from safe havens USD and JPY in Asia-Pac hours.

  • Note that $1.6bn worth of USD/JPY options with strikes at Y114.30 will roll off at today's NY cut, with a further $1.3bn of options due to expire at Y113.40-50. Spot USD/JPY last trades at Y114.17.
  • AUD garnered some strength as the minutes from the RBA's most recent monetary policy meeting showed that the Reserve Bank sees risks to inflation shifting upwards. Its Antipodean cousin NZD traded on a softer footing, with AUD/NZD showing above the 38.2% recovery of its Oct 13 - Nov 9 sell-off.
  • Offshore yuan went bid and printed its best levels since Jun 1, while spot USD/CNH plunged through support from ascending trendline/Oct 19 low in the process, as headlines surrounding Biden/Xi talks stole the limelight.
  • U.S. retail sales, UK labour market data and flash EZ GDP take focus on the data front, while central bank speaker slate features Fed's Bullard, Barkin, Bostic, George & Daly, ECB's Lagarde, BoC's Schembri & Riksbank's Breman.

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.