Asia Summary and Highlights 26 Jun
Reuters reported that the US is allowing ethane to be loaded and shipped to China
Wall Street Journal reported Trump considers naming next Fed chair early
Asia Session
The USD is broadly offered on WSJ’s report that Trump may appoint the next Fed Chair earlier than expected. While it has been rumored before, such critical changes are seeing major impact towards speculation. USD/JPY is trading 0.23% lower at 144.83 as JGB yields outpace their U.S. counterpart. Japan's Akazawa says Japan cannot accept 25% auto tariffs, suggesting we are far way from an imminent trade deal with the U.S..
The broader risk sentiment seems to be tilted positive on Thursday. The headline from Reuters reporting that the US is allowing ethane to be loaded and shipped to China is risk positive and was multiplied by the soft USD. AUD/USD is trading 0.21% higher at 0.6527,NZD/USD is trading 0.17% higher at 0.6049 while USD/CAD slips 0.07%. Else, EUR/USD is up 0.2% and GBP/USD is up 0.3%.
North American session
The USD moved higher through the North American session, EUR/USD leading the way moving above 1.1660 from slightly below 1.16. EUR/GBP made only marginal gains as GBP/USD advanced above 1.3660 from just below 1.36, but EUR/CHF was firmer near .9375. USD/JPY peaked at 145.95 before slipping to 145.15. AUD/USD moved back above .65 but USD/CAD was little changed.
At the NATO summit Trump threatened extra tariffs on Spain for lagging on defense spending but this may have eased fears that the EU as a whole would receive such treatment. Fed’s Powell repeated Tuesday’s House testimony to the Senate. May US new home sales saw a sharp 13.7% decline to 623k but this did not trigger a significant market reaction.