Asia Summary and Highlights 29 May

Asia Session

On early Thursday, we are hearing that a US federal court blocked Trump's "Liberation Day" tariffs from going into effect. While the details are not suggesting no tariffs for Trump, it has limited significantly the area Trump's tariff could land. Market seems to be happy for the news despite Trump is guaranteed to appeal. USD/JPY is trading 0.66% higher at 145.76 with U.S. Treasury Yields outperform JGB yields.

The broad risk sentiment stays upbeat after the earlier tariff headline. U.S. three major equity indexes are up more than a percent with regional equities also in the green, led by the Nikkei. More restriction from the U.S. on high tech chip export does not seem to bother market right now as NVidia shown another beta in earnings. AUD/USD is trading unchanged at 0.6427, NZD/USD is down 0.47% to 0.5939, reversing almost all post RBNZ gains while USD/CAD rose 0.05%. Else, EUR/USD is down 0.37% and GBP/USD is down 0.23%

North American session

The USD more than fully reversed European losses in the North American morning, EUR/USD falling below 1.13 and USD/JPY reaching 145. EUR/GBP also reversed European gains while EUR/CHF was weaker near .9340. AUD/USD saw only modest losses and a rise in USD/CAD was reversed.  

UST yields moved higher ahead of FOMC minutes from May 7, which produced few surprises, with the FOMC in agreement to hold policy steady until greater clarity was seen. UST yields moved off their highs but there was little response from equities or FX.