Asia Summary and Highlights 8 Aug

Asia session

Japanese trade envoy Akazawa said that he has made progress in U.S.-Japan trade as it seems now all rates are capped by 15%. It is mentioned that the U.S. has agreed to correct the presidential order of excessive tariff and will be refunding the excess. With everything capped by 15% it is a brighter picture than the report earlier in the week and see Japanese equities cheer on that. USD/JPY is trading 0.05% higher at 147.18.

It is reported that Prime Minister Netanyahu’s proposal for the occupation of Gaza City approved by their security cabinet. There were also signs of Israeli troops massing near Gaza. While these reports are yet to be confirmed, it could spark fear of the reignition of geopolitical tension. U.S. three major equity indexes are in the green while regional equities are performing individually. The AUD/USD is trading 0.05% lower at 0.6622, NZD/USD is trading 0.04% lower at 0.5958 while USD/CAD slips 0.05%. On later Thirsda, we have reports that Trump will be targeting physical gold for latest round of tariffs and see a squeeze higher. Else, EUR/USD is down 0.05% and GBP/USD is down 0.07%.

North American session

The USD was slightly firmer through most of the session before a late dip as Trump nominated Council of Economic Advisers Chair Stephen Miran to fill a Fed vacancy through January 2026. The USD saw marginal gains against the commodity currencies. USD/JPY was slightly weaker at 147.15 and EUR/USD little changed near 1.1650. GBP sustained its post-BoE gains, GBP/USD at 1.3430 and EUR/GBP at .8670. 

US data had little impact. Initial claims rose to 226k from 219k while Q2 saw a solid 2.4% rise in non-farm productivity with a moderate 1.6% rise in unit labor costs. Fed’s Bostic expressed caution over inflation risks while Bloomberg reported that Governor Christopher Waller was now favorite to be the next Fed Chairman.