Asia Summary and Highlights 30 June
Japan's FM will respond appropriately to currency moves at any time
Japan May unemployment rate 2.5%
Asia Session
As USD/JPY busted through 162 level, we hear from multiple Japanese officials that "they will respond appropriately to currency moves at any time". The jawboning has slowed but not stop the rally in the pair. Solid May employment data did not help the JPY. USD/JPY is trading 0.16% higher at 162.18.
The broader risk mood continue to improve on the second trading day of the week. The lack of development in the Middle East is deafening and could sag risk sentiment in the later session. AUD/USD is trading 0.21% lower at 0.6873. NZD/USD is trading 0.07% lower while USD/CAD rises 0.14%. Else, EUR/USD is down 0.27% and GBP/USD is down 0.22%.
North American session
The USD saw a gradual drift lower in the morning before stabilizing at lower levels in the afternoon. Oil was slightly firmer despite a lack of fresh escalation in the Middle East. The Supreme Court ruled that Trump did not have the power to dismiss Fed Governor Lisa Cook. June’s Dallas Fed manufacturing index of 0.0 was almost unchanged from May’s 0.4.
USD/JPY remained firm but did not test 162. EUR/USD moved up to around 1.1425 from 1.14. EUR/JPY advanced just above 185, EUR/CHF picked up too but came off a high of .9235. EUR/GBP was lower below .8620 if off the lows, a speech by the expected next PM Andy Burnham getting a decent reception from the UK gilt market. GBP/USD rose to near 1.3260 from 1.3220 before Burnham spoke and near 1.32 near the European open as GBP shorts were trimmed. USD/CAD and AUD/USD saw limited moves.