Asia Summary and Highlights 25 May
Broader Sentiment Upbeat
Asia Session
Broader sentiment improves significantly on Monday as market participants are persuaded a deal is close between U.S. and Iran. There hasn't been much update yet but we are seeing U.S. major equity indexes up a percent, Japanese equity index more than two percent and regional equities performing individually. The Aussie cheers along precious metal and is trading 0.55% higher than Friday's close after opening 10 pips short from now. NZD/USD is also trading 0.45% higher while USD/CAD slipped 0.09%.
The USD is trading broadly lower against majors on Monday on improving sentiment. We have an update from U.S. Rubio says "have pretty solid thing on the table" but continue to exert their military pressure. USD/JPY opened lower at 158.75 before reversing partial losses to 158.87. Else, EUR/USD is up 0.34% and GBP/USD is up 0.41%.
North American session
The USD advanced early supported by hawkish comments from Fed’s Waller, who called for the easing bias to be removed and expressed concern over inflation expectations, just as final May Michigan CSI data saw a sharp upward revision to inflation expectations, the 5-10 year view to 3.9% from 3.4% and the 1 year view to 4.8% from 4.5%. This outweighed a downward revision on the composite to a record low 44.8 from 48.2. However by the end of the session the USD was little changed, news of Qatari diplomats travelling to Iran raising hopes for weekend progress in the Middle East.
USD/JPY found support above 159 but EUR/USD was unable to sustain a move below 1.16 leaving EUR/JPY slightly firmer, though EUR/GBP at .8635 and EUR/CHF at .9110 were slightly weaker. AUD/USD largely erased earlier losses but USD/CAD was marginally higher.