Asia Summary and Highlights 11 Jul

Asia Session

The Loonie is off to a terrible sart on Friday's Asia session as Trump hit Canada with 35% tariff, excluding USMCA goods. The beginning date is the same with other countries on the 1st of August. USD jumped across board as Trump also suggest 15-20% tariff on countries that did not receive the "letter". USD/CAD jumped to 1.3731 before retracing partial gains to 1.3699 currently, up 0.32% for the session. 

USD gained strongly against major on Trump's tariff. While the 35% tariff on Canada grabs the headline, Trump also signaled plans to double the universal baseline tariff to 20% which should be negatively affecting market sentiment. U.S. Treasury Yields are rising throughout the session. USD/JPY is trading 0.59% higher at 147.07. U.S. major equity indexes have retraced most of the earlier losses but remain in the red, while regional equities are performing strongly on stimulus hopes. AUD/USD is down 0.21% to 0.6575, NZD/USD is also down 0.39% at 0.6011 while EUR/USD is down 0.25% and GBP/USD is down 0.22%.

North American session

The USD saw early gains, assisted by a fourth straight fall in US initial claims, by 5k to 227k, though later corrected from its highs. European currencies remained softer, EUR/USD near 1.17 from 1.1730 while GBP/USD fell to 1.3580 from 1.3610. USD/JPY however at 146.20 erased most of its early gains as did USD/CAD at 1.3670. AUD/USD more than fully erased an early dip below .6550, rising to .6590 as AUD/CAD reached .90. Dovish afternoon comments from Fed’s Daly downplayed inflationary risks from tariffs, and while generating little market reaction, were supportive of the USD’s move off the highs.