Asia Summary and Highlights 11 Jun

Asia Session

The Japan April PPI has surprised to the downside to -0.2% m/m but remain above 3% on a year o year basis. However, the of the session so far is Lutnick saying reached a framework with China and if approved by Trump, they will implement Geneva agreement. While it is a positive outcome, there is progress as itis just an implementation of what was mentioned in Geneva last month. There is little positivity to be brewed in and see USD/JPY up 0.12% to 145.05 with JGB yields lag.

After the U.S.-China "handshake", there is no firework in the equity market. Major U.S. equity indexes are seeing some "sell the fact trade" while regional equities are more upbeat. USD is trading broadly against major. AUD/USD is trading 0.15% lower at 0.6512, NZD/USD also facing offer and is trading 0.28% lower at 0.6034 while USD/CAD rises 0.06%. Else, EUR/USD is down 0.03% and GBP/USD is down 0.12%.

European and North American sessions

Weak UK labor market data hit the GBP in Europe, with a 109k decline in payrolled employees in May. EUR/GBP advanced to .8460 from .8425 and sustained its gains in North America, though a fall in GBP/USD to 1,3460 from 1.3540 was mostly reversed as EUR/USD advanced to near 1.1450 after dipping below 1.14. EUR/USD subsequently corrected to 1.1430 and GBP/USD to near 1.35. 

After slipping below 144.40 USD/JPY recovered to near 145 as UST yields reversed earlier slippage,  supported by hopes of progress in the US-China trade talks. The one US data release was May’s NFIB small business optimism index seeing its first rise since December. AUD and CAD picked up versus the USD during the EUR/USD advance but ended the day with only marginal gains.