Asia Summary and Highlights 18 March
The office of Israeli Prime Minister Benjamin Netanyahu confirming that "extensive strikes" had been launched on Gaza
Asia Session
The office of Israeli Prime Minister Benjamin Netanyahu confirming that "extensive strikes" had been launched on Gaza. It seems to be triggered by Hamas' refusal to release hostage and mediator proposal. Oil is higher and we see U.S. equity low, though the magnitude is limited for now. AUD/USD is down 0.15% to 0.6375, NZD/USD is unchanged while USD/CAD is up 0.1% as the current risk of geopolitical tension lies more in the Russia-Ukraine scene.
The rebound in USD/JPY is closing in on 150 after bottoming last week around the 146/47 figure. The optimism in risk asset remains fragile on Trump's policy and geopolitical uncertainty while U.S. Treasury yields are little changed and JGB yields higher. USD/JPY is trading 0.28% higher at 149.6. Else, EUR/USD and GBP/USD are down 0.11%.
North American session
February US retail sales were weaker than expected overall with a 0.2% increase though ex autos at 0.3% were in line. Equities took comfort from a 1.0% rise in the control group that contributes to GDP, reversing a January decline. Markets ignored weak data from March’s Empire State manufacturing survey and later the NAHB Homebuilders’ index.
Equity gains lifted the commodity currencies, AUD/USD to .6390 from .6350 while USD/CAD fell below 1.43 from 1.4350. EUR/USD remained firm sustaining a move above 1.098 while GBP/USD advanced to test 1.30. USD/JPY however was lifted by UST yields to 149.25 from 148.50.