Political noise returns

The announcement of an impeachment inquiry into the US President adds a twist for Asia markets following the wavering of markets over US-China trade.

Sentiment across the region looks set to take another hit with this latest political development.

Yen strengthens on heightened risk sentiment

We are back to paying attention to political concerns with US speaker of House Nancy Pelosi opening a formal impeachment inquiry with respect to President Donald Trump. While the President did aid Wall Street with the retracing of some losses by specifying that he would release the transcript on the call with the Ukrainian President, which is the matter in question, the likes of USD/JPY remained relatively suppressed. Prices were seen touching a 2-week low overnight, trading just above the $107 handle into Wednesday morning. As seen from the charts, a short-term downtrend had once again formed awaiting a test of the next support at $106.74. It would be difficult for the market to ascertain how long this matter will drag and the concurrent impact upon US-China trade, which is the bigger worry at present. Thus, it is likely that we could see the downward pressure on USD/JPY continue.

As it is, the likes of the US 10-year yields had been a clear indication of the market concern, falling to a 2-week low, and dragging on the greenback alongside the latest September consumer confidence disappointment. US conference board consumer confidence had dipped to a 3-month low to 125.1 against the 133.5 consensus, one to add to the series of worrying indications this week including the Germany manufacturing PMI plunge.

Asia open

Ahead of the string of Asia Pacific central bank meetings this week, it looks like the volume of geopolitical concerns had once again been tuned up, one to watch as we ponder in the likes of Bank of Thailand’s potential rate cut today. As it is, early movers including the likes of the Nikkei 225 and the ASX 200 had both erased 0.70% in the morning, awaiting the rest to fall in line with the declines. Reserve Bank of New Zealand likewise announces their rate decision today with no changes expected after the last surprise slashing of rates. As told above, Bank of Thailand will be one worth watching. Despite the consensus for no change, deteriorating economic data performance and the pressure from regional and advanced economies central banks could see the Thai central bank follow suit with another move here, one for USD/THB.

Looking at the likes of the local STI, prices had likewise been on a short-term downtrend that could see to more selling pressure building with the break at the 3149.4 support.

Yesterday: S&P 500 -0.84%; DJIA -0.53%; DAX -0.29%; FTSE -0.47%


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.