Asia Summary and Highlights 22 Apr
Trump threatens to "blow up the rest of their Country"
Asia Session
Minor rebound are seen in U.S. major equities and precious metal while there is little progress in the geopolitical development to cheer about. Trump's casual rants on Iran and threats to resume bombing does not seem to change sentiment or see a quick cave in from Iran. AUD/USD is trading 0.1% higher at 0.7160. NZD/USD is trading 0.25% higher while USD/CAD slips 0.06%. Both Brent and WTI is down a dollar per barrel.
Japan's March Export and Import grew strongly and have beaten estimates. However, the overall trade balance missed because of rising cost and stronger domestic demand. The export growth is strong from China and more balanced on the U.S. side. USD/JPY is trading 0.01% higher at 159.33. Else, EUR/USD is unchanged and GBP/USD up 0.05%.
European and North American sessions
The USD was mostly stronger. The primary focus was on the Middle East with Trump stating he did not plan to extend the ceasefire with Iran past the Wednesday deadline of 8pm ET, if no deal is reached before then, and prospects for fresh talks uncertain. US data was stronger than expected, with retail sales up by 1.7%, 1.9% ex autos. The rise was led by surging gasoline prices but sales ex autos and gasoline rose by a solid 0.6%. Later March pending home sales rose by 1.5% and February business inventories increased by 0.4%. Senate hearings for Fed Chair nominee Warsh took place. Warsh stated his support for Fed independence and denied that he had made commitments to lower rates to President Trump, though did suggest he would make significant changes to how the Fed operates.
USD/JPY rose to 159.50 from below 159. EUR/USD fell to 1.1730 from 1.1780. Despite continued pressure on UK PM Starmer, EUR/GBP edged below .87 from .8710. UK unemployment unexpectedly fell to 4.9% from 5.2%, but this was on fewer people seeking work and a GBP bounce on the data did not hold, the dip below .87 coming later. EUR/CHF was fairly stable. The USD managed only marginal gains versus AUD and CAD. Rising UST yields helped the USD to close strongly.