Asia Summary and Highlights 10 Jun

Asia Session

The JPY took a beating on Tuesday as Bank of Japan Governor Ueda says Bank has limited room to support growth with rate cuts in front of the parliament. While it is not a suggestion of rate cut, it is definitely not what you want to hear if you are a hawk. USD/JPY is trading 0.22% higher at 144.92 after reaching a session high of 145.29 as JGB yields caught up.

The risk sentiment is upbeat on Tuesday as broad equity indexes are happily in the green. it seems to be driven by the lack of bad news coming from U.S.-China trade front, which market participants took it as a positive sign. AUD/USD is trading 0.12% higher at 0.6524, NZD/USD i trading 0.06% higher at 0.650 while USD/CAD rose 0.05%. Else, EUR/USD is down 0.17% and GBP/USD is down 0.1%.

European and North American sessions

In a day of limited news, the USD opened Europe under some pressure, but USD/JPY bound a base below 144 while EUR/USD peaked at 1.1439. USD/JPY subsequently rebounded to 144.75 and EUR/USD fell below 1.14, but a softer USD tone retuned with the assistance of a New York Fed survey showing inflation expectations slipped in May. EUR/USD returned to 1.1425 but USD/JPY held up around 144.50.  

USD/CAD saw a spike above both Asian highs and 1.37 though the move was mostly reversed. Canadian Prime Minister Carney stated Canada would rase defence spending to 2% of GDP. AUD/USD remained firm, holding above .65. Late in the day Trump expressed some optimism over trade talks with China, but provided little detail.