ForexLive Asia-Pacific FX news wrap: USD/JPY extends higher again

• Japan finance minister Suzuki says watching FX moves closely
• Federal Reserve Bank of Dallas President Lorie Logan is speaking soon, at 0630 GMT
• European Central Bank chief economist Philip Lane is speaking on Monday
• Bank of England Deputy Governor Sarah Breeden speaks on Monday
• US data focus for Monday – March retail sales – the range of expectations to watch
• People’s Bank of China set MLF rate at 2.5% (prior 2.5%)
• PBOC sets USD/ CNY reference rate for today at 7.0979 (vs. estimate at 7.2478)
• Tesla (TSLA) is rumored to be preparing a massive round of layoffs
• Aluminum and nickel have rocketed higher on the London Metal Exchange
• Goldman Sachs raises its year-end gold forecast to $2,700, from $2,300 previously
• Apple’s global shipments of Iphones -9.6% in the first quarter of 2024 (Xiaomi surge)
• Japanese machinery orders beat expectations for February, a good sign for capex ahead
• ICYMI: New bank lending in China rose less than expected in March
• Goldman Sachs: oil prices will be dampened by hedging after Iran weekend attack on Israel
• New Zealand March services PMI plummets back into contraction at 47.5 (prior 53.0)
• US futures trade is open for the week – mixed response to the weekend attacks by Iran
• WSJ: “Some Western Officials Expect Israel to Respond Quickly to Iran’s Attack”
• DIARY NOTE: Federal Reserve Chair Jerome Powell is speaking on Tuesday.
• Villeroy says the European Central Bank is likely to cut interest rates in June
• Trade ideas thread – Monday, 15 April, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 15 April 2024
• Weekly Market Outlook (15-19 April)

Weekend Iran attacK

• It’s the most-dangerous moment in geopolitics since the dawn of the Ukraine war
• Iran says it struck an Israeli military base in Nagev
• Pictures appear to show strikes landing in Israel
• Senior Israel official says there will be a ‘significant response’
• Video shows air defense active just above Israel, sirens sound, reports of explosions
• Iran says ‘the matter can be deemed concluded’
• Bitcoin plunges on Middle East war fears
• Iran fires ballistic missiles at Israel
• Iran launched barrage of drones toward Israel
• Newsquawk Week Ahead: US and UK retail sales, UK, NZ, Canada and Japan inflation
• Tel aviv stocks and global sentiment amid Iran – Israel tensions
• Forexlive Americas FX news wrap: BIg moves and big angst in the Middle East

The
big weekend news was of Iranian attacks on Israel. Bitcoin lost
ground over the weekend but the impact on other financial markets was
more subdued once they opened on Monday/Sunday evening (US time).

Oil
had a volatile opening but has calmed to be little changed now from
its level of late on Friday. Its a similar story across much of major
FX bar USD/JPY. USD/JPY has climbed to another fresh 30+ year high.

Industrial
metals aluminium and nickel surged higher. New US and UK sanctions
have banned deliveries of any Russian supplies produced after
midnight on Friday. Aluminium jumped more than 9%, its single biggest
move in over 30 years.

From
China today we had an unchanged rate, of 2.5%, on this month’s
Medium-term Lending Facility (MLF). The People’s Bank of China
added in 100bn yuan, not fully offsetting the 170bn yuan maturing on
Wednesday this week. The Chinese economy is in need of further
stimulus, and while the People’s Bank of China is reluctant to cut
interest rates, fearing a wider rate disparity would see further
weakness for the yuan, it’s a little peculiar that they are
draining funds via MLF.

Mainland
China stock markets have traded higher on the day. Chinese
authorities restated
key policies
for the capital market late
on Friday. Also, state
wealth fund Central Huijin increased its
stakes in
China’s big
four
banks on
Friday.As
I update Bloomberg is reporting that Chinese private developers face
a $553 billion funding gap to complete pre-sold homes according to
Goldman Sachs analysts.

This article was written by Eamonn Sheridan at www.forexlive.com.