Asia Summary and Highlights 1 July

Asia Session

Another day another high for USD/JPY as the pair marches towards the next figure at 163. We haven't heard much from the Japanese side but such rally has assumed a rapid pace, potentially triggering an intervention if there is more follow through in the week. USD/JPY is trading 0.16% higher at 162.78 with JGB yields higher across the curve.

The broader market is undecided with Middle East concern resurfaced. The U.S. seems to be applying maximum pressure tactics again while Iran continues to play hardball. While it is beneficial for both side to reach a final agreement, no market participants would like to be caught wrongfooted. Major equity indexes are performing individually. AUD/USD is trading 0.39% lower at  0.6892 as precious metal stay depressed. NZD/USD is trading 0.03% lower while USD/CAD rises 0.12% with Brent and WTI performing individually. Else, EUR/USD is down 0.11% and GBP/USD is down 0.15%.

North American session

The USD saw some slippage in North America, but found support neat Monday’s lows before seeing a modest recovery. US data was mixed, with May job openings unchanged after a strong rise in April exceeding expectations, while June consumer confidence fell short of expectations, up only because May was revised down with increased pessimism on employment. Fed’s Hammack made some hawkish comments, saying inflation meant rate hikes may need to be considered.

USD/JPY stabilized near the highs around 162.60. but EUR/USD bounced to 1.1420 from 1.14 and GBP/USD to 1.3260 from 1.3220. AUD/USD rose to .6920 from .6890 while USD/CAD fell to near 1.42 from 1.4240. April Canadian GDP exceeded expectations with a rise of 0.5%.