Asia Open
Qatar LNG exports dropped 17% after Iranian strikes on key gas facilities and will take years to repair
EMERGING ASIA
Little headlines cross the wire in early Asia. Reports confirmed that LNG exports dropped 17% from Qatar after Iranian strikes on key gas facilities and will take years to repair, leading to billions of revenue losses. China, South Korea and Italy seems to be the countries mostly affected but the spillover is likely global. The European Council calls for de-escalation and maximum restraint yet there is lack of action. Precious metals are lower while U.S. equities higher.
North American session
EUR/USD and GBP/USD both picked up, with USD slippage extending in late trade after Israeli PM Netanyahu stated Iran no longer had the capacity to enrich uranium or manufacture missiles, raising hopes for an end to the war. EUR/USD saw highs above 1.16 from after a pre-ECB dip below 1.1450 while GBP/USD saw highs above 1.3450, up over two big figures from pre-BoE lows. USD/JPY fell over two big figures to near 157.50. EUR/JPY was also lower, with the slippage coming before the ECB decision.
The first round of US data was stronger, initial claims falling to 205k in the March payroll survey week rom, 213k and February’s Philly Fed manufacturing index rising to 18.1 from 16.3. However this was followed by a sharp 17.6% fall in January new home sales. Equities were under pressure and the UST curve saw a significant flattening, though these moves moderated in late trade as Middle East fears eased somewhat. USD/CAD was relatively stable, while a late AUD/USD bounce failed to hold above .71.