Asia Summary and Highlights 14 Jan

Asia Session

The JPY has continue to weaken on Wednesday's Asia session, mostly driven by sentiment on potential February snap election for Japan's lower house. Both the U.S. Treasury and JGB yields are higher and there has not been new headlines so far today. BoJ will be discussing bond buying operations in their Feb 26 meeting but there have not been clues of any surprises. USD/JPY is trading 0.17% higher at 159.32.

While the broader risk sentiment is performing individually despite U.S. easing Nvidia H200 export rules, metals are having their day. Both Gold and Silver are reaching new highs on geopolitical tension. The Aussie is well supported and see AUD/USD trading 0.25% higher at 0.6698. NZD/USD is also trading 0.14% higher while USD/CAD slips 0.03%. Else, EUR/USD is unchanged and GBP/USD is up 0.1%.

North American session

US December CPI rose by 0.3% as expected overall but the core rate ex food and energy was softer than expected at 0.2%. The USD saw a brief dip on the data but ended slightly stronger. USD/JPY rose to 159.10 from 158.90. EUR/USD was little changed near 1.1650 but EUR/GBP and EUR/CHF both advanced by 10 pips. With equities weaker AUD/USD slipped to .6680 from .67 but USD/CAD gains were marginal, as 1.39 capped the upside.