Asia Summary and Highlights 20 May
Iran confirmed president Ebrahim Raisi and Minister of Foreign Affairs Hossein Amir-Abdollahian died in helicopter crash
China’s LPR unchaged at 3.45% for 1yr and 3.95% for 5yr
Asia Session
Market opened with headline of Iranian helicopter carrying president and Minister of Foreign Affairs crashed and soon both were confirmed dead. Haven asset like Gold received a bid as it may escalate geopolitical uncertainty. However, so far there has been no sign of finger pointing, which kept oil prices in check. USD/JPY is trading 0.04% higher at 155.70 while JGB outperform U.S. Treasury in yields.
The Chinese LPRs are left unchanged with expectations that there will be more stimulus in the coming months. Regional sentiment is positive, so as U.S. three major equity indexes. Commodities are broadly positive on Monday and supported the AUD/USD to trade 0.22% higher at 0.6707, NZD/USD is down 0.04% at 0.6131 while USD/CAD slipped 0.07%. Else, EUR/USD is up 0.12% and GBP/USD is up 0.06%.
North American session
The USD more than fully reversed European gains in North America. There was not much news. The one data release, April’s leading indicator, was weaker than expected at -0.6%, and Fed’s Bowman reiterated a hawkish stance, willing to hike if inflation progress stalls or reverses.
EUR/USD rose 35 pips to 1.0875. EUR lost ground to GBP as GBP/USD moved above 1.27, though EUR/CHF was stronger, reaching .9875. AUD/USD advanced 50 pips to .67, outperforming the CAD as USD/CAD found support at 1.36. For the most part the USD finished near the lows but USD/JPY, after slipping from 155.90 to 155.25, recovered to around 155.65.