Asia Summary and Highlights 2 Apr
Nothing new from Trump's speech
Asia Session
Market participants were left disappointed by Trump's speech as it provided little new detail. It is just the usual victory rhetoric he is giving and the oil market responded with bids. Both the Brent and WTI are now 5 USD/b higher with major equity indexes down more than a percent. AUD/USD is down 0.57% at 0.6889, no support from precious metal also. NZD/USD is trading 0.82% lower while USD/CAD rises 0.28%.
The USD is trading broadly stronger on Thursday as market participant's worry of geopolitical picture reignites. Long end JGB yields are revisiting recent high and looks set for higher grounds if the uncertainty persists. USD/JPY is trading 0.39% higher at 159.39. Else, EUR/USD is donw 0.48% and GBP/USD is down 0.58%.
European and North American sessions
The USD spent the session softer on hopes for an end to the conflict in the Middle East, but USD slippage lost momentum in the North American session and late trend saw the USD correct higher with Trump scheduled to make an address on Iran in the North American evening. EUR/USD was unable to sustain a move above 1.16. USD/JPY traded in a range centered around 158.50, with late gains to 158.85.
EUR/GBP slipped to .8705 from .8735, despite BoE’s Bailey stating that markets were getting ahead of themselves in pricing rate hikes. AUD and CAD both saw modest gains versus the USD, with late corrections, with AUD/CAD gains also correcting. US data was on the firm side of expectations, with a 62k increase in March’s ADP employment report, a 0.6% rise in February retail sales, and a March ISM manufacturing index of 52.7 from 52.4.