Asia Summary and Highlights 23 Mar
Trump and Iran Sending Threats
Asia Session
Over the weekend, we have Trump sending his 48 hours ultimatum towards Iran. He threatens to target key energy infrastructure if Iran does not reopen the Strait of Hormuz. His threat was met with verbal retaliation from Iran, suggesting they will also be scorching the earth by targeting Gulf countries energy and water infrastructure. Regional equities are hit hard, so as precious metal. AUD/USD is trading 0.57% lower at 0.6982. NZD/USD is 0.33% lower while USD/CAD slips 0.05%. Both Brent and WTI are higher.
The market spotlight remains on geopolitical tension. Everyone is waiting for Trump's next step, whether he will order the strike to proceed or "TACO". It is a mess in the market with risk broadly sour and yields higher. USD/JPY is trading 0.13% higher at 159.41. Else, EUR/USD is down 0.18% and GBP/USD is down 0.13%. Euro and Aussie haven't closed their opening gap against the USD yet.