Financial Markets developments since last 12 hours

Forex news for Asia trading Wednesday 29 July 2020

• USD/JPY seen to as low as 102 in 1 to 2 months
• Australian inflation data - Q2 CPI, headline -1.9% q/q (expected -2.0%)
• PBOC sets USD/ CNY reference rate for today at 6.9969 (vs. yesterday at 6.9895)
• Further coronavirus restriction in Australia - tighter border closure
• Fitch on Japan: Affirms rating at 'A' , but lowers its outlook to negative
• FOMC announcement due Wednesday 29 July 2020
• Japan press say the government will forecast a 4.5% GDP contraction for FY2020/21
• Russia expected to approve a coronavirus vaccine within 2 weeks - 'Sputnik moment'
• ICYMI - Reports that HK is set to announce deferment of election scheduled for Sept 6
• China's latest new cases number of COVID-19 are the highest since March
• Air New Zealand freezes bookings to Australia until late August
• Australian Foreign Minister Marise Payne says has no intention of hurting relationship with China
• Gold around $2,000 - this may be the “new normal”
• Further near term declines seen forecast for the US dollar
• UK data - BRC Shop Price Index -1.3% y/y for July (vs. prior -1.6%)
• US House Speaker Pelosi says Republican coronavirus stimulus bill unlikely to pass in Senate
• Goldman Sachs 12 month forecast for gold is US $2300 / oz (from previous $2000)
• Meadows says Democrats unwilling to accept gutting the unemployed
• Hong Kong have further tightened coronavirus restrictions says China's Global Times
• Mnuchin on the coronavirus economic relief negotiations: “Just the beginning of the talks”
• Goldman Sachs says real concerns about USD as reserve currency. Barclays says No.
• Trump press conference - talking up vaccine hopes again
• Pelosi says she does not believe McConnell is ready to make an agreement on coronavirus aid
• ICYMI: JP Morgan expect gold rally to lose momentum in the months ahead
• Private oil survey data shows a large draw in crude oil inventory

Forex news for North American trading on July 28, 2020

• US July consumer confidence 92.6 vs 95.0 expected
• July US Richmond Fed +10 vs +5 expected
• Sen. McConnell: No bill will be put forward on the floor without liability protection
• US treasury sells $44 billion of 7 year notes at 0.446%
• Florida coronavirus cases rise 9243. Deaths hit record
• US May Case-Shiller 20-city house price index +3.69% y/y vs +4.0% expected
• Biden says he will announce VP pick next week