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With not a lot of top-tier reports on tap, Asian session traders focused on the impact of rising U.S. Treasury yields and reactions to Trump’s Iran deal decision.

  • U.K.’s BRC retail sales monitor (y/y) down by 4.2% vs. 0.7% decrease expected, 1.4% uptick in March
  • Japan’s average cash earnings (y/y) improves by 2.1% vs. 1.1% expected, 1.0% previous
  • Japan’s leading indicators down from 106.0% to 105.0% vs. 105.2% expected

Major Events/Reports:

Japan’s cash earnings report

Data printed earlier saw real earnings of Japan’s workers rising for the first time in four months in March.

Nominal cash earnings rose by 2.1% from a year ago in March, which marks the fastest rate since June 2003 after showing a 1.0% increase in February.

Meanwhile, real wages shot up by 0.8% against the 0.8% annualized decrease that we saw in February. According to the Ministry of Health, Labour, and Welfare, a slowdown in inflation, rises in regular pay and one-off bonus payment, and a decline in the share of low-paid part-timers led to the rebound in real wages for the month.

No new catalysts for Asian session players

There were no top-tier reports released in the past couple of hours, so Asian session traders focused on pricing in Trump’s decision to back out of Iran’s nuclear deal.

While others worried about the geopolitical brouhaha that Trump’s decision could make, others are relieved that Iran or other global superpowers haven’t shown signs of directly challenging the decision.

  • Nikkei is down by 0.42% to 22,413.5
  • Australia’s A SX 200 is down by 0.09% to 6,088.5
  • Hang Seng is up by 0.40% to 30,525.2
  • Shanghai index is up by 0.06% to 3,163.249

As for commodities, the U.S. Treasury yield shooting back up above 3% boosted the dollar demand and weighed on gold prices, while oil prices recovered after a buy-the-rumor-sell-the-news situation in the previous session.

  • Gold is down by 0.29% to $1,310.61
  • Brent crude oil is up by 0.92% to $76.66
  • U.S. WTI is up by 0.83% to $70.61

Major Market Mover(s):

The yen was the biggest loser of the bunch for the session as a rise in U.S. Treasury yields pumped USD/JPY hard and took a lot of the yen crosses along with it.

USD/JPY is up by 39 pips (+0.36%) to 109.52
EUR/JPY is up by 34 pips (+0.26%) to 129.81
GBP/JPY is up by 34 pips (+0.23%) to 148.16
CAD/JPY is up by 31 pips (+0.36%) to 84.56

There were no direct catalysts to influence the Aussie’s price action save for a bit of risk aversion and some residual selling from yesterday’s retail sales miss.

AUD/USD is down by 16 pips (-0.22%) to .7434
AUD/JPY is down by 10 pips (-0.12%) to 81.42
AUD/CAD is down by 18 pips (-0.19%) to .9629
EUR/AUD is up by 30 pips (+0.19%) to 1.5942
GBP/AUD is up by 26 pips (+0.14%) to 1.8196

Watch Out For:

  • 6:45 am GMT: France’s industrial production (0.4% expected, 1.2% previous)
  • 8:00 am GMT: Italy’s retail sales (0.1% expected, 0.4% previous)