FX opening rates Sunday 6 January 2019

Welcome to another week fellow traders, readers. I hope you had a relaxing and peaceful weekend. Wishing you a pipful week again in our company.

In the weekend news, more US shutdown talks not leading to anything concrete yet. Trump threatening to go on for months if needed. More and more unpaid workers call in sick , which may lead to increased crippled services, weigh somewhat on the USD but a breakthrough would never be far off. If trading it, be careful for sudden turn arounds. As a matter of fact Trump is just tweeting the wall may take a steel rather than concrete form.

The meeting between Chinese and US officials sees some absentees of high caliber as reported late Friday, but that doesn’t necessarily mean a bad thing leaving some hardliners home, leaves room for potentially positive albeit less high level preparations. Trump feels he has the upper hand with the weakened Chinese economy. Let’s see what China has to say the next few days.

In the UK Brexit comes back to the fore: PM May thus far keeps the plan to hold the vote next week intact, DUP making its usual noise and a People’s Vote poll now shows Britons would vote to stay in the EU if a new referendum would be called as already hinted a few times past months.

Elsewhere Japan’s PM Abe gave an interview to NHK in which he repeated basically what MOF officials declared, to be very vigilant on Japan’s economy. We can imagine himself, MOF, BOJ doing anything they can not to let anything derail the fragile recovery, including postponing once again the planned October tax hike. I’d imagine JPY to remain on the defensive on the back of it.

Lastly I saw Mexico’s  Lopez Obrador’s promise to launch an ambitious economic plan, which should keep MXN bid on dips for now.

On the data front we just had the Australian Dec manufacturing PMI out, dropping under 50 to 49.5 from 51.3 prior. AUDUSD lost a few spreads only, trading at 0.7112 from 0.7118 Friday’s close.

Here are the FX retail opening rates. As usual it’s early hours, be careful for liquidity and rapidly changing conditions.

K-man
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