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

Weekend Iran attacK

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).

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.

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.

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.

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
banks on
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.

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