Asia Summary and Highlights 13 Apr

Asia Session

The "No Deal" scenarios over the weekend keep market participants fearful on potential drastic escalation. While it will likely be serious physical disruption if the U.S. intended to blockade Iranian ports for a long period of time, it is actually not far from the current picture which see little movement over the Strait of Hormuz over the past weeks. It allow market participants to not panic now and digest the implication first. AUD/USD is trading 0.31% lower at 0.7042 with a session low at 0.6992. NZD/USD is trading 0.17% lower while USD/CAD rises 0.14%. Both Brent and WTI jumped higher, major equity indexes off session low but still in the red.

2yr JGB yields shoot past recent high on geopolitical driven oil spike. Opening at historic high above 1.4%, 2yr yield have rotated lower below 1.4%. While it should be triggering an imminent intervention from the BoJ, the surge in yields will be raising eyebrows. 10yr yields are also within inch distance from 2.5%.  USD/JPY is trading 0.31% higher at 159.73. Else, EUR/USD is down 0.3% and GBP/USD is down 0.41%. None of the major pairs have successfully closed the opening gap yet.