Asia Open

EMERGING ASIA

Asia session starts on an improving note. U.S. major equities tip toing into the green while precious metals enjoy their Asia bids and recovers further. It is reported that Canada discusses Keystone XL revival with US amid rising energy security risks and Iran allows conditional Hormuz transit. Both signaling market focus remains on the Strait of Hormuz despite Brent and WTI lower. 

European and North American sessions

FX movements were limited. A USD dip in Europe was fully erased and the USD moved higher in North America after a report that the US was to send 3,000 troops to the Gulf, though this move was mostly corrected with subsequent Trump comments hopeful for a deal with Iran. The troops story lifted oil and UST yields, with the latter also influenced by a weak 2-year auction. Equity moves were modest. 

The troops story saw USD/JPY make a brief push above 159. EUR/USD was fairly stable spending most of the session slightly below 1.16. EUR/GBP made modest gains while EUR/CHF advanced more significantly to 9160 from .9130. AUD/USD was fairly stable near .6970 while USD/CAD saw modest gains to 1.3765.

US March S and P PMIs were mixed, manufacturing rising to 52.4 from 51.6 but services slipping to 51.1 from 51.7. Q4 non-farm productivity was revised down to 1.8% from 2.8% on the recent GDP revision, and unit labor costs revised up to 4.4% from 2.8%, the latter exceeding expectations with wages revised higher.