Asia Summary and Highlights 23 Apr
Broader sentiment heavy
Asia Session
Broader sentiment is heavy after false report of Iran attacks. The lack of progress has caught market participants' nerve and risk asset is vulnerable to shock/fear driven correction, which could turn into a spiral quickly. Most major equity indexes are under, so as precious metal. AUD/USD is trading 0.17% lower at 0.7149. NZD/USD is trading 0.33% lower while USD/CAD is unchanged. Both Brent and WTI are more than a dollar per barrel higher, after correcting from the earlier spike.
USD remain broadly stronger, along with higher Treasury yields. USD/JPY is trading 0.09% higher at 159.59 as short end JGB yields compressed by diminshing expectation of an imminet hike from the BoJ. Else, EUR/USD is down 0.02% and GBP/USD is down 0.11%.
European and North American sessions
Despite Trump’s extension of the ceasefire, with the US continuing its blockade of Iran and Iran responding by seizing two ships in the Gulf, Middle East tensions persisted and the USD made modest gains. USD/JPY rose to 159.50 from 159.20 and EUR/USD fell to 1.1710 from 1.1740. EUR/GBP slipped to .867 from .869 with UK CPI rising to 3.3% in March from 3.0%, on consensus. EUR/CHF in contrast rose above .9180 from below .9170. AUD/USD and USD/CAD were fairly stable near .9160 and 1.3660 respectively with equities resilient, supported by solid earnings results.