Asia Summary and Highlights 24 Apr
Japan March Headline inflation 1.5% y/y
Asia Session
The Japan March Headline CPI came in at 1.5% y/y, only slightly higher than February as the energy stimulus cushion the energy spike. Core CPI arrived at 1.8% y/y while Core-core at 2.4% y/y. Only core-core is above target range but is showing signs of moderation. However, it does not truly reflect the impact of energy shock. It takes time for business to feel the burn through of stimulus, before passing it to consumers. USD/JPY is trading 0.07% higher at 159.76.
Any relief rally is destined to be short-lived as market participants relies on hopium to live. There has been little progress between U.S. and Iran despite the three week Lebanaon-Israel ceasefire. Geopolitical tension likely be flaring up as U.S.-Iran's conflict regarding mines in the Strait of Hormuz persist. Major equity indexes are performing individually while precious metal lower. AUD/USD is trading 0.06% lower at 0.7123, so as NZD/USD. USD/CAD is trading 0.09% higher with both Brent and WTI a dollar/b lower. Else, EUR/USD and GBP/USD are down 0.03%.
European and North American sessions
The USD was slightly firmer on Middle East concerns, with a North American afternoon boost coming from a report of Iran activating air defenses. Ranges were tight, but USD/JPY nudged above 159.50 and EUR/USD edged below 1.17. EUR/GBP and EUR/CHF were little changed, recovering from early dips. USD/CAD rose to 1.37 from 1.3680 while AUD/USD edged below .7150.
US initial claims rise to a still subdued 214k from 208k in April’s payroll survey week. April’s US S and P PMIs were stronger, manufacturing at 54.0 from 52.3 and services at 51.3 from 49.8.