FOREX CARD

ForexLive Asia FX news wrap: US Treasury and Federal Reserve publicly fight – ForexLive


Forex news for Asia trading
for Friday 20
November 2020 

Further reports that EU
leaders are intensifying preparations for a no trade deal Brexit
shipped a fe points off GBP as US markets closed for Thursday.
Conflciting headlines on Brexit talk developments will also be
intensifying in coming days and weeks, as a heads up. But ‘m sure
y’all now this already.

The
Brexit news was soon swamped by
US Treasury Secretary
Mnuchin issuing an
order to the Federal Reserve to return unused funds for certain of
its monetary policy support programs. There is more in the bullets
above. The optimistic take on this is that Mnuchin will want the
returned funds to be directed towards fiscal measures, which would be
a positive. But Mnuchin’s comments indicate he has no plan for
this, only a vague hope:

  • “I
    hope that Congress will seriously consider reallocating $580 billion
    of funds that have already been appropriated that wouldn’t cost
    taxpayers an additional penny.”

Perhaps
after Congress has all joined hands and sung Kumbaya I guess. This is
just smoke from Mnuchin, the less optimistic take is this is another
cut to support for the economy and will lead to further damage.

The
Biden administration could reverse course on this, of course. But
that is not until January 20, which in the coronavirus-damaged US
economy is an eternity away.

Of
concern also was the immediate and public response from the Fed,
disputing the decision. Fed Atlanta head Bostic was soon on the wires
reiterating the public disagreement between the Fed and Treasury.

In
markets the first response was a sell-off for risk FX and a bid for
the USD. When Globex reopened US equity index futures were marked
lower.

As
the session in Asia progressed currency losses were unwound, with
retracements against the dollar for EUR, AUD, NZD, GBP and CAD.
USD/CHF has been notably weak. As I post many of these are on
approach
to where they were before the Mnuchin news hit so resistance will be
encountered. 

Let’s block ads! (Why?)


Scalping Strategy Course (DVD + Online) - $299.00

In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.




Forexmentor Coach's Corner First Month (Online) - $149.00

The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.



Source link

Have your say