Asia Summary and Highlights 14 May
Xi is meeting with Trump
Asia Session
While Xi rolled out the carpet and welcome Trump with waving flag, it is yet to know if the bilateral meeting will yield anything concrete. Major market is rangebound with little movement across major currency pairs. USD/JPY is trading unchanged at 157.83.
Regional equities are performing individually with U.S. major equities toes in the green. AUD/USD is down 0.04%, NZD/USD is down 0.08% while USD/CAD is unchanged with both Brent and WTI rising half a dollar per barrel. Else, EUR/USD is up 0.02% and GBP/USD is down 0.02%.
North American session
US April PPI was significantly higher than expected, up by 1.4% overall, 1.0% ex food and energy and 0.6% ex food, energy and trade. However the market reaction was modest, with oil slightly lower and traders awaiting the Trump-Xi meeting. USD/JPY was slightly firmer around 157.85 but EUR/USD was broadly stable supported at 1.17. AUD/USD advanced to .7260 from .7240 and with USD/CAD marginally firmer AUD/CAD picked up to .9950 from .9920.
The Senate confirmed Kevin Warsh as Fed Chair and ECB’s Lane said the oil price shock may require rate hikes. The UK political situation remains volatile with reports Health Secretary Wes Streeting is poised to resign and challenge PM Starmer as early as Thursday. EUR/GBP picked up to .8675 but later returned to near .8660.