Asia Summary and Highlights 3 August
Trump claims Hormuz deal done, nuclear talks to start Monday
U.S. Bessent, Japan confirm Friday's joint yen intervention
Asia Session
The confirmed U.S.-Japan joint intervention supports JPY as it could put a firm lid on USD/JPY rally. Short end JGB yields are also rising, with 2yr shooting past 1.5%. It indicates market participants are now anticipating a higher terminal rate from the BoJ. USD/JPY once sank to 155.28 before recouping partially losses to trade 0.68% lower at 156.541.
Vibrant weekend as we heard Trump saying Hormuz deal is done and joint intervention confirmed by U.S.-Japan. The credibility from Trump is questionable but we do have headlines on early Sunday suggesting a deal between Iran and Oman is close. It lead to a more than 5 USD/b drop in oil. U.S. equities are more upbeat than regional ones. AUD/USD is trading 0.07% higher, NZD/USD down 0.07% while USD/CAD rose 0.1%. Else, EUR/USD is up 0.08% and GBP/USD is down 0.06%. All opening gaps have been closed at least once.