Asia Summary and Highlights 29 Dec
Silver Wild Swing
Geopolitical Negotiation Persists
Asia Session
The BoJ December Summary of Opinions is supportive of a higher neutral rate and is seen supporting the JPY after Christmas. The summary highlighted real wage to be increasingly positive and stronger growth from stimulus in 2026. It also indicates low interest rate has been hurting the JPY yet nominal rate is already at a level not seen in years, thus warranting caution and patience to observe its impact. USD/JPY is trading 0.14% lower at 156.26.
It seems to be a vibrant Monday where we see Silver go on a wild ride after Elon Musk flags concern over potential silver supply restrictions. The move was somewhat exacerbated by recent speculative position in the metal and year end illiquid times but the facts of a potential supply restraint from China are there. On the other hand, there are more optimism on the Ukraine-Russia trade deal despite territorial issue remain sticky. AUD/USD is trading unchanged at 0.6715 after opening lower, NZD/USD is trading 0.19% lower while USD/CAD rises 0.02%. Else, EUR/USD is down 0.1% and GBP/USD is down 0.05%. There are gaps in the opening for major but was closed throughout the Asia session.