Asia Summary and Highlights 15 June
U.S.-Iran Deal to be Signed On Friday
Asia session
After weeks of back and forth bombing, U.S.-Iran have finally come to an agreement to ceasefire and reopen the Strait of Hormuz. While the details maybe ambiguous in future negotiations, the Strait of Hormuz and U.S. naval blockade will be lifted within 30 days. There will also be a sanction relief for Iranian oil & petrochemical sales and half of frozen asset will be released before the next round of negotiation. Market is cheering yet Trump is pouring cold water by says US will resume Iran strikes if it can't reach a nuclear accord. Nevertheless, major equities are happy, so as precious metal. AUD/USD is trading 0.43% higher at 0.7075. NZD/USD is trading 0.37% higher while USD/CAD slips 0.12% with oil down more than three dollar/b.
The market is expecting the BoJ to hike by 25bps in June with the central bank likely lock and loaded. The hike has been teased for months and mostly being priced in, the bond purchase program and forward guidance would be more closely watched. USD/JPY is trading 0.1% lower at 160.03. Else, EUR/USD is up 0.37% and GBP/USD is up 0.3%.