Asia Summary and Highlights 28 Apr

Asia Session

The BoJ has kept rates unchanged at 0.75% with a 6-3 vote. Inflation forecast is revise higher on geopolitical driven higher energy prices. While they do not see growth dynamics changing course, they feel the risk of economic growth is skewed to the downside. USD/JPY is trading 0.2% lower at 159.11. Short end JGB yields are rising while the far end steadies.

After Iran's proposal of a three stage negotiation, Trump says he is skeptical of Iran's negotiation offer but looks likely both sides will keep talking, instead of escalation. With nothing concrete on the ground, the market is relatively quiet and see major equity markets rangebound. AUD/USD is trading 0.08% lower at 0.7179. NZD/USD is trading 0.18% lower while USD/CAD rises 0.05%. Both Brent and WTI are higher in the Asia session. Else, EUR/USD is down 0.06% and GBP/USD is down 0.03%.

European and North American sessions

In a quiet day the USD slipped in Europe on reports of an Iranian peace proposal that would reopen the Start of Hormuz but most of the slippage was erased in North America with there being no sign that the US would agree to the proposal, which did not address Iran’s nuclear activities. USD/JPY returned to 159.40 from 159.20 while EUR/USD slipped back to 1.1725 from 1.1750. EUR/JPY failed to hold a move above 187 while EUR/GBP and EUR/CHF saw little change. AUD/USD advanced to .7190 from .7160 but USD/CAD losses were marginal. Equities saw little change.