Asia Summary and Highlights 9 June
No Sign of Progress in Middle East
Asia Session
We have arrived to the second day of the week yet we are short from seeing any sign of improvement in the geopolitical field. One can be partially comforted on the somewhat lack of escalation as Iran seems to stop their tit for tat retaliation but we are far away from normalization. Trump di make some remark that is upbeat yet not reliable. U.S. equities are still recovering while regional equities perform individually. AUD/USD is trading 0.16% higher at 0.7056. NZD/USD is trading 0.46% higher while USD/CAD slips 0.09%. Both Brent and WTI are lower for the session.
USD/JPY is staying above 160 and we haven't heard much intervention yet. It is mostly becasue the latest rally past 160 is geopolitical event driven and the pace isn't explosive. The BoJ could be playing it slow as they believe their potential hike in June could curb the losses in JPY with some hawkish forward guidance. USD/JPY is trading unchanged at 160.16. Else, EUR/USD is up 0.1% and GBP/USD is up 0.19%.
North American session
With Israeli PM Netanyahu stating he had halted strikes on Iran, after US President rump called for a cease fire, oil and the USD came off the day’s highs, but remained firm, the USD largely sustaining Friday’s bounce after the US non-farm payroll.
EUR/USD found support at 1.15 but gains were capped near 1.1550 and a move back to around 1.1535 was seen. USD/JPY however found support below 160 before returning to 160.20 meaning EUR/JPY found support above 184 before bouncing to 184.80. EUR/CHF picked up to .92 from .9185 while EUR/GBP never got far from .8640. USD/CAD made marginal gains above 1.3950 but AUD/USD was little changed near .7050.