Asia Summary and Highlights 22 April

Asia Session

USD/JPY is retesting Monday's low and quickly approaching the 140 figure. We heard from Japanese ministers on their take towards trade deal, suggesting less compromise from the Japanese side while the FM is going to meet with U.S. Treasury Secretary Bessent to talk about FX. It seems to be weighing on JPY as a coloration of FX intervention could push the JPY significantly higher, though it is unlikely for now. USD/JPY is trading 0.5% at 140.15 while U.S. Treasury and JGB Yields both higher but the later erased most opening gains.

The broad risk asset market remains choppy after returning from Easter. Major equity indexes are trading higher than session low with U.S. equities in the green. Gold price reached another high on geopolitical tension and the falling USD.  AUD/USD is up 0.29% to 0.6435, NZD/USD is up 0.38% to 0.6023 while USD/CAD slips 0.26%. Else, EUR/USD  and GBP/USD are up 0.21%.

North American session

The USD fell by around 1% across the board in Asia and Europe, due to fears of Trump undermining Fed independence given his attacks of Chainman Powell. Trump fuelled these fears with remarks in the North American morning, calling for Fed easing and insulting Powell. This saw equities fall sharply and the UST curve steepen. FX movements were however relatively modest, USD/JPY stable a little above 140.50 and EUR/USD finding support after a dip below 1.15 after peaking at 1.1573. USD/CAD recovered from earlier losses, erasing a move below 1.38.