Asia Summary and Highlights 10 Jul
U.S. equities lower, regional positive
Trump officially announcing a 50% tariff on Copper, also tariffs on Brazil
Asia Session
Trump officially announced a 50% tariff on Copper & Brazil and further undermines the bids for USD. USD is trading broadly weaker on Thursday's Asia session so far with U.S. Treasury yields little changed while JGB yields slide. USD/JPY is trading unchanged at 146.31 after touching a session low of 145.75.
After Trump's copper and Brazil tariff announcement, risk asset is performing individually in the U.S. and regionally. U.S. three major equity indexes are all in the red while regional equities are outperforming. AUD/USD is trading 0.17% higher at 0.6545, NZD/USD is trading 0.1% higher at 0.6005 while USD/CAD slips 0.02%. Else, EUR/USD and GBP/USD is up 0.15%.
North American session
The morning saw the USD slightly softer as were UST yields, with USD/JPY slipping below 146.50 but EUR/USD with no clear direction around 1.1710. Trump announced tariffs ranging from 20-30% on The Philippines, Brunei, Algeria, Moldova, Iraq, Libya and Sri Lanka, all fairly close to April 2 levels.
US 10-year supply saw solid demand. FOMC minutes suggested only a minority held dovish views, but UST yields continued to slip. The USD remained slightly softer, USD/JPY below 146.30, and EUR/USD edging above 1.1720.