- The market has opened the week quietly except in Asia where major stock markets have traded firmly lower on the news there will be no Chinese monetary stimulus any time soon. Both the Hang Seng Index and the Nikkei 225 Index are ending the day down by more than 1%. US stock index futures have declined slightly but will likely move little today due to the US exchange holiday.
- There has been little movement in the Forex market, with the Asian session seeing the Australian Dollar as the weakest major currency and the US Dollar as the strongest major currency, putting the AUD/USD currency pair in focus. Trend traders will still be looking for long trades in the USD/JPY currency pair which broke to a new 7-month high above ¥141 at the end of last week, while the GBP/USD currency pair also made a new 1-year high price on Friday. Long term weakness is likely to continue in the Japanese Yen.
- Cocoa futures rose again Friday, to reach another 7-year high closing price.
- The USA has removed Japan from its Currency Monitoring List.
- It is a public holiday today in the USA (Juneteenth), so stock markets will be closed.
Forex Today: Asian Stocks Lower as Chinese Stimulus Hopes Fade
Adam Lemon
Asian stock markets have started the week with firm declines as it becomes clear there will be no monetary stimulus from China’s central bank in the near term.