Ranges (Up till 12.

30pm HKT)
Currency

Currency

EURUSD

1.1295-1.1334

EURJPY

126.77-127.65

USDJPY

111.88-113.02

EURGBP

0.7806-26

GBPUSD

1.4462-86

USDSGD

1.3888-1.3973

USDCHF
AUDUSD

0.9718-48
0.7093-0.7129

USDTHB
USDKRW

35.230-570
1200.0-1211.7

NZDUSD

0.6663-0.6740

USDTWD

Closed

USDCAD

1.3890-1.39

USDCNH

6.5310-6.5489

AUDNZD

1.0575-1.0662

XAU

1233.3-12478.1

Key Headlines

Am back and more than bit rusty.

BOJ Governor Kuroda met with PM Abe and

caused some speculation. UsdJpy rallied to
113.02 and Nikkei pared losses. Then Kuroda
told reporters that meeting was one of those
regular meetings, didnt discuss FX and there
was a huge ouch!

FX Flows

Equity markets stayed soft; risk is off and plenty of

babbling from officials.

There are 2 large EurGbp option expiring today NY cut.

0.7750 with notional Eur1.4bn and 0.7850 has
Eur850mio.

Asians
Usd/Asia is touch firmer today. Very little input
according to our Asian Desk, Perry thinks market is
taking money off the table, taking back their short
positions partly profit taking ahead of weekend and
other reason is due to uncertainty over reopening of
Chinese market on Monday, many are wondering what
the CNY fix will be.

Who said what

NZ published the Jan Food Prices and the index rose 2%

from -0.8%. This boosted Kiwi from 0.6717 to 0.6727
and later to 0.6740. RBA Stevens was upbeat when he
addressed parliament; this helped AudNzd above 1.06handle and handed Nzd back below 0.6720.

Risk-off after open, puts pressure on AudUsd and later

knocking it off to 0.7100. Unlike other days when it is
risk-off, AudNzd sold; but today the cross is in demand.
Thus, Nzd forced to 0.6675.

Japan Finance Minister Taro Aso made some remarks on

UsdJpy but declined to comment on intervention. The
Nikkei fell on open, was down more than 4.3% during
the first 15 minutes, causing UsdJpy 111.88. Japanese
newswire reported that Japan PM Abe met with BOJ
Kuroda at midday. Nikkei pared nearly more than half
of losses after the break, UsdJpy popped to 112.96.
Plenty of speculation about the rally in Nikkei some
said it was because MOF FX Chief Asakawa was called
into Abes office. I heard one particular real money guy
bought equities (Japanese banks) and sold JGBs.
Then Kuroda spoke, Nikkei and UsdJpy fell. He told
reporters meeting with Abe was regular and that it was
not appropriate to discuss FX with the PM. Ouch!

RBA Stevens: Commodity prices continue to

fall; Aud has adjusted
RBA Stevens: Still further CPI impact of Aud
depreciation to come
RBA Stevens: Aud rate matters to policy but we
dont target it
RBA Stevens: Unlikely well be raising rates
soon
RBA Stevens: Part of China capital outflow due
to policy uncertainty
RBA Stevens: China economy is slowing but not
disastrous
RBA Stevens: Board retains flexibility to ease
further if helpful
Japan Aso: Watching markets closely
Japan Aso: Will take appropriate measures on
Forex as needed
Japan Aso: Wants to consider policy
coordination looking at markets at G20
BOJ Kuroda: Dont think BOJ is taking
incremental approach on monetary easing
BOJ Kuroda: Told reporters that it was not
appropriate to discuss FX with PM
BOJ Kuroda: Meeting was part of regular
meetings with Abe
Japan MOF Asakawa: Spoke about market
background with Cabinet Secretary

News & Data

New Zealand Jan Food Prices up 2% from -0.8%

Australia Dec Home Loans M/M up 2.6% from
+1.8%
Australia Dec Investment Lending at 0.6% from
0.7%

WSJ: More Cuts Loom as Oil Nears $25

As crude prices slide toward $25 a barrel, many oil
companies have little choice but to start making the
steep cost cuts they have avoided up until now,

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.

jettisoning every well that cant break even or isnt

needed to keep the lights on. Folks are coming to
grips with the reality, said Dennis Cassidy, managing
director at consulting firm Alix Partners, of the 20month-and counting oil bust that many now fear will
wipe out profits in 2016.
http://www.wsj.com/articles/more-cuts-loom-as-oilnears-25-1455238714
Jacob Greber in AFR: RBA's Glenn Stevens: 'Markets
are dropping their bundle'
Reserve Bank of Australia governor Glenn Stevens says
"markets are dropping their bundle". "There are latent
issues which people have chosen to focus on," he said,
adding it was "uncertain" how the current market
turmoil would pan out.
"No one knows the future."
http://www.afr.com/news/economy/monetarypolicy/rbas-glenn-stevens-markets-are-dropping-theirbundle-20160211-gms34p
Telegraph: Bank of Japan loses control as QE hits the
limits
The Japanese yen has become the lightning rod of
extreme stress in the global financial system, rocketing
this week in violent moves that threaten to plunge
Japan back into deep deflation and overwhelm the
experiment of "Abenomics". The currency has
appreciated by 9pc against the US dollar since the Bank
of Japan (BoJ) cut interest rates below zero for the
first time ever at the end of January, entirely defeating
the purpose.
http://www.telegraph.co.uk/finance/economics/12153
032/Bank-of-Japan-loses-control-as-QE-hits-thelimits.html

Nikkei: Trouble may be overblown, but when will it

blow over?
Though plenty of market watchers see the sell-off in
Japanese equities and the run-up in the yen as a
temporary overreaction, some reckon it will get worse
before it gets better. "The expectation of a U.S.
economic recovery, which was the driving force behind
a weakening yen and rising stock prices last year, has
wavered," said Naoki Kamiyama at Nikko Asset
Management, offering an explanation for the turmoil.
http://asia.nikkei.com/Markets/Tokyo-Market/Troublemay-be-overblown-but-when-will-it-blow-over
Kathimerini: Greece says will have to spend over 1
bln this year to deal with refugee crisis; NATO on its
way
The cost of dealing with the refugee crisis in Greece
this year could exceed 1 billion euros, or more than 0.5
percent of gross domestic product, Alternate Minister
for Migration Policy Yiannis Mouzalas told Parliament
Thursday. His warning came as NATO confirmed that
one of its rapid reaction forces would begin patrols in
the Aegean aimed at tackling human traffickers who
send refugees and migrants across the sea in dinghies
from Turkey to Greece.
http://www.ekathimerini.com/205908/article/ekathim
erini/news/greece-says-will-have-to-spend-over-1-blnthis-year-to-deal-with-refugee-crisis-nato-on-its-way

WSJ: Flash Rally in Eurodollar-Futures Contract

Hints at Unease Over Fed
A brief surge Thursday morning in the price of a popular
derivative used to bet on central-bank rate moves is
the latest sign of markets reacting in unexpected ways
under stress. Some attributed the rapid price increase,
an event known as a flash rally in Wall Street
parlance, to sentiment changes around two days of
testimony in Congress by Federal Reserve Chairwoman
Janet Yellen. In her testimony, she addressed the
potential for negative interest rates as a policy tool.
The adoption of negative rates in Japan and the
extension of rates further into negative territory in
Sweden have sent shudders through markets in recent
days.
http://www.wsj.com/articles/flash-rally-in-eurodollarfutures-contract-hints-at-unease-over-fed-1455230850

These information have been obtained or derived from sources believed to be reliable, but I make no representation or warranty as to their accuracy or completeness.
Copyright 2013 The Poon Report by Vincent Poon. All rights reserved.