Asia Summary and Highlights 30 Mar
Japan’s FX chief Atsushi Mimura warns authorities are ready to take “decisive” action if speculative moves persist
Asia Session
Another escalation of rhetoric from Japanese officials as USD/JPY breached 160. As per forecast, there is no actual intervention in the level but rather its triggers the Japanese officials. Our intervention forecast believe the ongoing pace of rally will matter more than level, which could mean actual intervention in a figure or two if USD/JPY rallies this week. USD/JPY retreated to 159.72, 0.33% lower for the session with short end JGB yields retreat from recent high.
Equities are performing individually across region as the broader risk sentiment remains frosty on geopolitical uncertainty. While Pakistan seems to be coordinating negotiation between U.S. and Iran, the dual track strategy from Trump does not provide clarity to the immediate future. AUD/USD is trading 0.04% lower at 0.6870. NZD/USD is trading 0.11% lower while USD/CAD slips 0.02% as Brent and WTI erasing opening gains. Else, EUR/USD and GBP/USD are trading 0.09% higher.