Asia Summary and Highlights 12 Dec
Trump on Venezuela: It's going to be starting on land pretty soon
Asia Session
While risk have a strong bid in the late hours of NA session, the sentiment took a beating on Trump beating the war drum in early Asia. For whatever reason, Trump keeps on pressuring Venezuela, first by seizing oil vessel, than now threatens to be on land. But most market participants seem to believe such is a tactic for gaining negotiation chips, so USD/JPY is trading 0.09% higher at 155.72.
The broad risk sentiment remains undecided on Friday after a turbulent week post FOMC. Speculators are split between more easing and A.I. spending concern and see major equity indexes performing individually. AUD/USD is trading 0.03% lower at 0.6662, NZD is unchanged while USD/CAD rises 0.05%. Else, EUR/USD is down 0.02% and GBP/USD is up 0.05%.
North American session
US data was mixed, with initial claims rebounding above trend to 236k to offset a below trend 192k in the preceding week that included the Thanksgiving holiday, but a narrower than expected $52.8bn September trade deficit, from $59.3bn in August. The trade surprise was largely due to a surge in exports of nonmonetary gold.
The USD was generally softer, with EUR/USD rising to 1.1745 from 1.1715. The EUR was firm generally, with EUR/GBP at .8770 from .8750 and EUR/JPY rising to 182.70 after briefly dipping below 182. EUR/CHF was however stable near .9330, sustaining a European dip. USD/JPY slipped to 155 before reversing most of its losses in a recovery to 155.55, with UST yields also moving off their lows. USD/CAD saw losses to 1.3770 from 1.38. AUD/USD sustained European gains, but was fairly stable through the North American session near .6670.