Asia Summary and Highlights 7 November

Asia Session

After jumping three figures on Trump's election, the finance minister of Japan came out with more verbal intervention. While it is quite understandable, it is hard to see the BoJ to do an actual intervention at current level as JPY has seen worse days. The latest style of intervention is likely riding the wave, so unless we see a correction wave, there may not be an intervention for now.

The Japan September Labor cash earning has stayed strong at 2.8% y/y. The wage and inflation dynamic remains key for the BoJ and they would like to see wage to be steadily growing, thus supporting their tilt for more tightening. USD/JPY is down 0.26% to 154.21 as U.S. Treasury Yields retreats while JGB yields advance. 

Regional equities initially fall in early Asia as fears of renew waves of tariff may hit regional economy. However, sentiment improves while session is progress with market participants overlooking tariff concerns and instead cheering along the broader risk mood. AUD/USD is up 0.75% at 0.6621, NZD/USD is also 0.77% higher at 0.5984 while USD/CAD slipped 0.32%. Else, EUR/USD is up 0.12% and GBP/USD up 0.31%.

North American session

The reaction to the election was largely done in Asia and with no data the USD saw little further advance in North America. EUR/USD found support around 1.07 while USD/JPY held above 154. EUR/JPY moved up to 166. Most other currencies saw little movement. The count in the House remains undecided but Republicans currently have the lead.