Asia Summary and Highlights 27 Apr
Sentiment improves after the opening drop
Asia Session
The broader sentiment improves after the opening drop. The lack of progress weekend led to a risk off opening as market participants fear drag on of the current geopolitical tension. There are little positive headlines so far and the improvement could be attributed to optimism of no re-escalation or Iran's proposal. U.S. major equity indexes have closed the gap mostly. AUD/USD is trading 0.37% higher at 0.7174 after opening around 20 pips lower than Friday's close. NZD/USD also 0.22% higher while USD/CAD slips 0.06%. Oil has erased its earlier gains.
After Trump cancelled envoy plans to Pakistan, market participants were disappointed no progress. But Iran's proposal of three stage negotiation has given them hope as it left the hardest nuclear issue for last, in exchange for immediate ceasefire and subsequent opening of Strait of Hormuz. USD/JPY closed the opening gap and is trading 0.08% lower at 159.16 as USD haven bids fade on more upbeat mood. Else, EUR/USD is up 0.12% and GBP/USD 0.11%.