Macro Afternoon

by Chris Becker

The USD continued to selloff today as the aftermath of Trump (apostrophe) s first pres conference, with almost no details regarding fiscal spending plans or otherwise provided created huge volatility overnight in currency markets. That continued somewhat today with the fallout limited to Japanese stocks as Yen and gold surged on the haven trade, the later almost reaching $1200USD per ounce.

The Shanghai Composite is down nearly half a percent to 3123 points as the PBOC trieds to keep the onshore Yuan firmer in today’s fix.  The Hang Seng is doing worse, down 0.7% and erasing most of yesterdays gains yet momentum remains quite positive on the daily chart:

HSI.fsDaily

Stocks are negative in Japan as well with the Nikkei retreating over 1%, down back to 19113 points.. The USDJPY is the culprit again as the Yen continues to find a strong bid overnight on the Trump conference, the USDJPY pair slumping through the 115 handle to find a temporary bottom here at 114.45 or so:

USDJPYH1

S&P Futures are mixed, opening strongly but fading into the afternoon trader and hanging around the point of control at 2260 points going into the London open:

S&P.fsH1

The ASX200 is barely treading water, down only few points to 5766 points as it absorbed its own booming domestic currency.

That’s right, the Aussie dollar is booming higher again as USD is dumped, the PAcific Peso is reaching up to the 75 handle, going a little too fast here for mind. Its about to surpass the overnight session high, so watch for another breakout overnight:

AUDUSDH1

The data calendar tonight is again quiet with weekly US initial jobless claims.

Comments

    • ErmingtonPlumbingMEMBER

      They will be able to decomission their Dongfeng 5 and Trident missiles now and just train their Nukes into eachother!

      Am I an ideas man or what!?

  1. New Zealand … Westpac …

    Black Friday home loan increases come from the Red Bank. Hikes range from +10 bps to +30 bps. Meanwhile wholesale swap rates fall | interest.co.nz

    https://www.interest.co.nz/news/85470/black-friday-home-loan-increases-come%C2%A0-red-bank-hikes-range-10-bps-30-bps-meanwhile

    Westpac has chosen to be the next bank to raise home loan rates.

    They follow BNZ who raised most rates. In BNZ’s case it also raised floating rates.

    But Westpac has not taken the opportunity to do the same. … read more via hyperlink above …

    • It amuses me when money does not act according to some peoples conventions…. but never question their underlining assumptions and where they came from…

      • The Traveling Wilbur

        It amuses me when some people ass-me-u about what some other people are thinking…

        Missing Miggy Skippy?

      • Its not taking strips off you Wilbur…. its just people – expecting – money to act like a commodity or such and then be flummoxed when it responds as a demand signal….

        Disheveled…. plea’s of assisted suicide are not my drama… falls under the Darwin award category….

  2. The Traveling Wilbur

    So President-intellect Donald Trump is allegedly a fan of golden showery things… hmmm… wouldn’t want to get the chop from his cabinet then. The golden-handshake could be awkward!

    And the golden-parachute could be eye-wateringly fatal. Allegedly.