Asia Summary and Highlights 25 June

Asia Session

The brief dip below 159 on Monday for the USD/JPY did not last. Equities have bounced a little while U.S. Treasury Yields remain depressed. 10yr JGB yields are just sitting below 1% as we hear another round of verbal intervention from Hayashi, Japan's Chief Cabinet Secretary. We also have the latest Japan service PPI which came in slightly lower than previous month. USD/JPY is trading 0.09% lower at 159.45.

The NASDAQ and S&P are staging a minor rebound after Monday's losses while Dow Jones also in the green. Regional equities are performing individually with Nikkei solid in the green, HSI erased early gains but still manage to stay in the green and Chinese equities in the red. The Aussie capitalized on better sentiment and softer USD to trade 0.1% higher against the USD at 0.6662, NZD/USD is down 0.02% while USD/CAD slipped 0.04%. Else, EUR/USD and GBP/USD are up 0.08%.

North American session

The USD was generally softer in a quiet North American session, GBP/USD rising to near 1.27 and EUR/USD getting close to 1.0750 before fading. USD/JPY was however slightly firmer, at 159.65. The commodity currencies also advanced versus the USD.

There as not much news. June’s Dallas Fed manufacturing index rose to -15.1 from -19.4, near expectations. Comments from Fed’s Goolsbee and Daly were fairly cautious but not hawkish. Bank of Canada Governor Macklem reiterated that it was reasonable to expect further rate cuts.