Asia Summary and Highlights 3 September
CNN report US military escorts 40 tankers with 18 million barrels through Hormuz on Tuesday
Asia Session
The stars are lining up for JPY as market participants are front running the BoJ September hike. Apart from rate hike speculation, the potential calming in Middle East is also driving the haven USD bids away. USD/JPY is trading 0.70% lower at 157.57 with JGB yields lower across the curve.
CNN reported that U.S. military escorts 40 tankers with 18 million barrels through Hormuz on Tuesday. Compared to roughly 20million barrels per day pre-war, it is a close one to effectively smooth traffic in the Strait. However, it is unlikely commercial vessels will return to pre-war activities as U.S. escort does not guarantee no accident and such escort may not be sustainable. Major equity indexes are performing individually with oil lower while precious metal cheer. AUD/USD is trading 0.14% lower at 0.7160. NZD/USD is trading 0.1% higher while USD/CAD slips 0.08%. Else, EUR/USD is up 0.1% and GBP/USD is up 0.06%.