ForexLive Asia FX news wrap: Oil lower on Suez boat refloat

Forex news for Asia trading
for Monday
29
March 2021

FX
rates opened little changed in very early Monday trade here in Asia.
The news over the weekend was ominous though, that a US hedge fund
had gone under over over-leveraged trades resulting in huge losses
(see bullets above). This news saw US equity index futures open lower
on Globex, albeit not by much, and then that weaker reopening
extending. The extension of the selling carried over into buying of
the USD with EUR, AUD, CAD, NZD all trading lower. If you check out
your charts you’ll see the clear dip in the
currencies and the retrace … CAD excepted. The Canadian dollar has
held its losses, weaker oil cited as the factor.

Further
on the equity selling, Nomura says the loss for its prime brokerage
unit (these are units in banks that lend to funds etc., even to
over-leveraged funds) will likely be over USD2bn. There will be
losses at other brokerages also. The opening of cash US equity
markets could see another fear &/or liquidation response.

The
shipping news was better, the Ever Given ship lodged sideways in the
Suez Canal has been reported as refloated although there are few
details. 

Forex news for Asia tradingfor Monday29March 2021
Source

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