Asia Summary and Highlights 21 Jan
Long end JGB yield's climb stalled
Gold continue to benefit from geopolitical tension
Asia Session
Long end JGB yields have taken a breather on Thursday as market sentiment stabilize. There hasn't been headlines regarding changes on Japan policy while the opposition party is calling for bond buyback and slower BoJ tapering. Both the 10yr and 30yr yields have retreated from historical high. USD/JPY is trading 0.03% higher at 158.16.
Gold continue to benefit from geopolitical tension as it climbed more than 5% so far this week. Market participants are worried about Trump's hostile takeover attempt of Greenland and seems to have affected their willingness in holding the USD. AUD/USD is trading 0.02% lower at 0.6741. NZD/USD is trading 0.07% higher while USD/CAD is unchanged. Else, EUR/USD is down 0.07% and GBP/USD is down 0.06%.
North American session
There was little FX movement in the North American session though the USD did see a modest recovery in the afternoon, USD/JPY pushing through 158 to 158.20 while EUR/USD edged down to 1.1715. EUR/GBP sustained its European gains while EUR/CHF sustained its European losses. AUD/USD saw some early gains but could not break .6750. Equities remained under pressure, extending losses in the afternoon as Trump gave a press conference, which added little of note.