Asia Summary and Highlights 13 July
Iran extend strikes to Qatar and the UAE for the first time in months, plus Jordan, Kuwait and Oman
Asia Session
The Middle East situation worsens as both sides exchanged more missiles target in my more grounds. The scale of escalation seems to suggest a full blown military operation is not far away. It looks like a difficult situation for the U.S. unless they are willing to torch the ground as it will be extremely hard, if not impossible, to eliminate Iran’s capacity of disrupting Strait traffic. AUD/USD is trading 0.34% lower with major equity indexes all lower with gaps not closed. NZD/USD is trading 0.11% lower while USD/CAD uncharged despite both Brent and WTI up more than three usd/b.
The haven bids for the green back is strong as Middle East tension flares up again. With little signs of imminent cooling, rising escalation remains the most likely outcome. Rising along JGB yields, the USD/JPY recaptures the 162 handle,0.24% higher for the session. Else, EUR/USD is down 0.11% and GBP/USD is down 0.15%.