Asia Summary and Highlights 11 June

Asia Session

We are still seeing missiles flying in the Middle East in the later half of the week. Trump's optimistic words earlier in the week seems to be empty air as the latest development feels more than escalation than a deal closing soon. U.S. major equity indexes are recouping partial overnight losses but regional equities are bleeding. AUD/USD is trading 0.009% higher at 0.7003. NZD/USD is trading 0.07% lower while USD/CAD rises 0.03%.

After all the bombings, Trump ordered a halt and said the coming 24 hours would be decisive for any agreement. It will be keeping market participants on their toes as such conflict remains critical in the global market. USD/JPY continues its slow grind above 160 and is trading 0.01% higher at 160.55. Else, EUR/USD and GBP/USD are up 0.07%.

North American session

Ahead of the US CPI the USD got a lift as Trump stated that Iran had taken too long to negotiate a deal and would now have to pay the price. CPI came in as expected at 0.5% overall, but lower than expected at 0.2%, 0.208% before rounding and the USD more than fully erased its bounce on the Trump comment. As the session continued the USD picked up to build marginal gains, with Trump stating that Iran would be hit hard again sustaining Middle East concerns, which pressured equities.

USD/JPY was slightly firmer near 160.50 while EUR/USD was fairly stable near 1.1550. EUR/GBP saw little change though EUR/CHF continued to advance. USD/CAD found support near 1.39 and returned to 1.3940 after the Bank of Canada left rates unchanged with a balanced statement that saw Canadian front end yields slipping. AUD/USD found support near .70 but a bounce faded leaving the pair back near .70.