Asia Summary and Highlights 21 January

Asia Session

A vibrant start for Tuesday as we began to hear the barrage of executive order from Trump. While none has been directly related to tariff yet, Trump is floating the idea of 25% tariff on Canada and Mexico on February 1, a percentage that seems to be higher than previously anticipated. The Loonie is getting smashed and see USD/CAD jumped to 1.4518 before retracing a tad to 1.4431, still up 0.86% higher. U.S. equities are trading lower but off session low while regional equities are in the green. AUD/USD is down 0.43% to 0.6247 and NZD/USD is down 0.31% to 0.5654.

While all eyes remains on Trump's executive orders, the BoJ decision this week is not to be over looked. So far, we have not heard any "leaks" and market continue to price in a high chance for a BoJ hike, at least 10bps. We believe the surprise lies in the downside as BoJ has not been acting as hawkish as they spoke. USD/JPY is trading0.31% lower at 155.13 as both the U.S. Treasury and JGB yields slide. Else, EUR/USD down 0.26% and GBP/USD is down 0.25% with both off session lows.