Asia Pacific Market Open Talking Points
- US Dollar[1] gains at Sterling’s expense, mixed US jobs report sinks bond yields
- White House said that sticking issues in US-China trade talks were discussed
- Market optimism may boost Nikkei 225 as week begins, sinking Japanese Yen[2][3]
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FX News Friday
The US Dollar aimed cautiously higher on Friday, rising at the expense of a weaker British Pound[5] and brushing aside a decline in front-end government bond yields. Sterling weakened in the aftermath of UK Prime Minister Theresa May asking the European Union to delay Brexit to June 30th. The fate of the United Kingdom turns to the emergency Brexit Summit later this week before the April 12th withdrawal deadline.
Some newswires attributed the drop in US front-end government bond yields to President Donald Trump expressing his wish for the Federal Reserve to shift to quantitative easing. However, by that point most of the damage to bond yields had already been done. Weakness emanated from the mixed jobs report earlier. Accompanying a beat in employment gains were soft wage growth and a drop in labor force participation.
US Jobs Report Sends Bond Yields Lower
Sentiment generally improved on Friday nevertheless on welcoming progress in US-China trade talks from the Asia trading session. The S&P 500[6] rose almost 0.5% by the end of the session. Yet, the pro-risk Australian and New Zealand Dollars couldn’t find much upside momentum. Perhaps a stronger Greenback
