Asia Summary and Highlights 5 Jan

Asia Session

Over the weekend, Trump has stroke Venezuela and capture its president Maduro. Trump also commented on allow U.S. oil company to access Venezuela oil reserves. There are a lot of uncertainty floating around but one thing we are sure of is escalating geopolitical uncertainty. Precious metal continues to climb but the story today in the FX market is stronger USD. AUD/USD is trading 0.37% lower at 0.6669 after opening lower. NZD/USD is trading 0.37% and USD/CAD is trading 0.27% higher. 

USD/JPY initially opened lower as market participants seek haven after the geopoltiical turmoil in Venezula. However, the gap did not last as USD gains the upper hand in terms of haven. BoJ's Ueda copy and paste comment did not have a lasting impact in supporting the JPY for none believe the political obstacle towards another hike is easy to overcome. USD/JPY is trading 0.30% higher at 157.28. Else, EUR/USD is down 0.37% and GBP/USD is down 0.32%. All opening gap has been closed, at least once during the Aisa session.

North American session

In a session with limited news, the USD erased some early losses, the moves largely guided by UST yields. USD/JPY slipped to near 156.50 before rebounding to 156.85 while EUR/USD rose as high as 1.1765 before slipping back to 1.1725. EUR/GBP remained slightly weaker near .8715 while EUR/CHF fell to .9285. The commodity currencies were little changed, with equities quiet. December’s final U.S. S and P manufacturing PMI was unrevised at 51.8.