Ranges (Up till 11.

45am HKT)
Currency

Currency

EURUSD

1.0718-67

EURJPY

131.88-132.29

USDJPY

122.74-123.22

EURGBP

0.70795-965

GBPUSD

1.5118-86

USDSGD

1.4183-1.4220

USDCHF
AUDUSD

1.0033-62
0.7026-66

USDTHB
USDKRW

35.84-88
1153.6-1157.8

NZDUSD

0.6529-77

USDTWD

32.66-85

USDCAD

1.3244-80

USDCNH

6.3855-6.3945

AUDNZD

1.0740-60

XAU

1188.7-1193.6

Key Headlines

Usd lost some ground as money is taken off the

table rather norm in Asia.

Most major newspapers are echoing event risks

within Eurozone. From WSJ Delay in $2bn
Greek bailout, Portugals government drama and
Spains renewed clash between the central
government and Catalonia are bigger concerns.
At the moment, not reflected in FX space.

Move in UsdInr happened after Asia closed

yesterday. EM traders jumped in today but into
the hands of profit takers. We dont expect much
to happen today because of India closed for
Diwali.
Interesting part was in UsdSgd. We saw a sharp
move from 1.4210 to 1.4190, which we suspect
was stop loss driven. Then we got to 1.4183
where local bids appeared. I heard there is a
masked account at 1.4175. Euro backed away
from 1.0760 and UsdSgd returned to 1.42handle.

Portugals government drama and Spains renewed clash

between the central government and Catalonia are
bigger concerns. At the moment, not reflected in FX
space.
Usd was also weaker against Aud, Nzd and Cad. Very
little to pen for the Aussie and Kiwi; just Usd sentiment.
Dec 15 Brent Crude Futures touch firmer and UsdCad
slipped to 1.3247 low. Does look like some buying at
1.3240-45 and stops thereafter. Bids are light rates
space pointing the currency pair to 1.3105.

Asians
Move in UsdInr happened after Asia closed yesterday.
EM traders jumped in today but into the hands of profit
takers. We dont expect much to happen today because
of India closed for Diwali.
Euro edged up Usd/Asia slipped. Interesting part was in
UsdSgd. We saw a sharp move from 1.4210 to 1.4190,
which we suspect was stop loss driven. Then we got to
1.4183 where local bids appeared. I heard there is a
masked account at 1.4175. Euro backed away from
1.0760 and UsdSgd returned to 1.42-handle.

Who said what

FX Flows

Remembrance Day in Canada; Veterans Day in USA.

Usd lost some ground as money is taken off the table
rather norm in Asia.

EurJpy and UsdJpy were sold after Tokyo opened;

UsdJpy bids 122.80-90 were filled. Im told of more into
122.50. Nothing much thereafter; am warned that decent
size stops are lurking below 121.75 from system funds.
EurUsd first pressured by EurJpy but corrected higher
as profit taking nudge the pair into 1.0750s. Our trader
Sam also took back his shorts and is now looking to
reload if EurUsd goes back to 1.0820-40. I fear there are
stops above 1.0850.
Most major newspapers are echoing event risks within
Eurozone. From WSJ Delay in $2bn Greek bailout,

Moody's: ECB stimulus, the UK's EU

referendum and Middle East instability could
affect EMEA high yield issuance in 2016
Japan PM Abe: Wants to raise potential growth
rate to reach GDP target
RBNZ Wheeler: Too soon to say if Auckland
house price inflation easing
RBNZ Wheeler: No further macro-prudential
measures in mind right now
BOJ Harada: Japan economy continues to
recover moderately
BOJ Harada: Can confirm CPI rising towards 2%
at end of 2015
BOJ Harada: Japan faces risks from China, US
rate hike and Europe
BOJ Harada: Private spending, capex remain
weak
BOJ Harada: More easing if price hike
mechanism at risk
SAFE: Q3 current account surplus at $63.4bn
BOJ Kuroda: Committed to reaching 2% goal
BOJ Kuroda: Delay in 22% target largely due to
energy prices
BOJ Kuroda: Will continue with QQE
BOJ Kuroda: Only halfway to reaching 2% price
goal

News & Data

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.

South Korea Oct Jobless Rate improved to 3.4%

from 3.5%
Australia Nov Westpac Consumer Confidence
Index at 101.7 from 97.8
Australia Nov Consumer Confidence SA at 3.9%
from 4.2%

FT: Chinese banks need 355bn under global

'too big to fail' rules
China's biggest banks face a daunting task in meeting
new global standards designed to prevent taxpayer
bailouts of lenders, as their reliance on deposit funding
ordinarily considered a source of strength puts
them at a disadvantage. The Financial Stability Board,
which makes policy recommendations to the Group of
20 large economies, on Monday confirmed its final
proposals for requiring global banks to hold a special
debt known as Total Loss Absorbing Capacity (TLAC).
Three Chinese banks are on the hook for nearly onethird of the 1.1tn in additional loss-absorbing debt that
the FSB estimates the 30 global systemically important
banks (G-Sib) need to raise to satisfy the TLAC
requirement. Bank of China, Agricultural Bank of China,
and Industrial and Commercial Bank of China are
together short 355bn, according to board estimates.
http://www.ft.com/intl/cms/s/0/20a43d16-878d-11e58a12-b0ce506400af.html?ftcamp=published_links
%2Frss%2Fcompanies%2Ffeed%2F
%2Fproduct#axzz3r2gne136
WSJ: Foreign Buyers May Be Buying Up
Canadas Luxury Homes, CMHC Chief Says
Canadas national housing agency says it is looking into
how to track foreign ownership in the countrys realestate markets, saying it is possible that overseas buyers
account for a substantial portion of demand for luxury
homes in Toronto and Vancouver. Canada Mortgage and
Housing Corporation President Evan Siddallsaid the
agency may turn to local real estate agents, developers
and land registry offices to obtain information about
annual residential sales to foreign buyers. He made the
remarks in the text of a speech he delivered on Tuesday
in Toronto.
http://www.wsj.com/articles/foreign-buyers-may-bebuying-up-canadas-luxury-homes-cmhc-chief-says1447200194?mod=wsj_nview_latest
WSJ: Molson Coors Nears Deal to Buy Out
Remainder of MillerCoors Venture
Molson Coors Brewing Co. is nearing a deal to buy the
rest of the MillerCoors LLC U.S. joint venture in a $12
billion deal that would pave the way for SABMiller PLC
to cement its blockbuster sale to Anheuser-Busch InBev
NV. As part of the deal, the U.K.s SABMiller would sell
its 58% of the venture to Denvers Molson Coors,
according to people familiar with the matter. The deal,

which has been anticipated since SABMiller and AB

InBev reached preliminary agreement on a $100 billionplus merger in October, would include the Miller brand
internationally, the people said. The agreement is
expected to be announced Wednesday along with a
formal pact between SABMiller and AB InBev.
http://www.wsj.com/articles/molson-coors-nears-dealto-buy-remaining-millercoors-stake-1447180321
WSJ: From Default to Darling: Argentina Bets
Pay Off for Hedge Funds
In a dark year for many hedge funds, Argentina is
emerging as an unexpected bright spot. For more than a
year, a handful of firms piled into Argentine
investments, hoping elections to replace President
Cristina Fernndez de Kirchner would usher in an
economic turnaround. Few investors expected a huge,
immediate payoff: Just last year, the South American
nation defaulted on its debt amid a legal clash with
hedge funds, including Paul Singers $27 billion Elliott
Management Corp.
http://www.wsj.com/articles/from-default-to-darlingargentina-bets-pay-off-for-hedge-funds-1447204491?
mod=wsj_nview_latest
In Telegraph UBS chairman Axel Weber: Brexit
will not undermine the City of London
Britain will get a very favourable deal if the country
leaves the EU, ensuring that the City of London is not
undermined as a major financial centre, according to
UBS chairman Axel Weber. The former head of
Germanys central bank is one of the heavyweights of the
financial and regulatory world, and his words will carry
clout in the debate over Britains future in the EU.
http://www.telegraph.co.uk/finance/newsbysector/bank
sandfinance/11986047/UBS-chairman-Brexit-will-notundermine-the-City-of-London.html
WSJ: Rising Chinese Production Keeps Lid on
Aluminum Prices
Chinas surging exports of aluminum are becoming as
contentious as its fast-rising shipments of steel as prices
of the metal used in automobiles to beverage cans
continue to hover just above their six-year low. Despite a
dip last month, Chinas aluminum exports are up 14.4%
so far this year, according to official data, as companies
there take advantage of their ability to produce at a lower
cost than international rivals to seize market share.
http://www.wsj.com/articles/rising-chinese-productionkeeps-lid-on-aluminum-prices-1447186082
WSJ: Canada Questions Bombardiers $1 Billion
Bailout
Canadas Quebec province is putting up $1 billion to
rescue Bombardier Inc., but the newly elected national
government indicated Tuesday it might not consider the

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.

transportation giant too big to fail. Quebec is asking the

federal government to make a significant contribution
to the $1 billion lifeline the province gave the storied
Montreal-based company as it struggles to find buyers
for its new commercial jets. The Bombardier deal doesnt
require cost cutting or management or governance
changes; those terms, coupled with the severity of
Bombardiers troubles, have raised concerns about how
much taxpayers stand to lose.
http://www.wsj.com/articles/canada-questionsbombardiers-1-billion-bailout-1447202197?
mod=wsj_nview_latest

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.