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Asian Markets Stabilized Overnight

Published 06/12/2013, 09:33 AM
Updated 05/14/2017, 06:45 AM
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The Nikkei was down by only 0.21% early this morning; however, volatility is still high on the USD/JPY pair, with the intraday range hitting 220 points yesterday.

Yields on the 10-year U.S. bonds have now reached a 14-year high, one of the consequences of the Fed’s quantitative easing program coming closer to its end. Such action would diminish liquidity, and central banks are somewhat trapped, with the market now accustomed to this generalized, money-printing environment. In Canada, market operators are now pricing the probability of a rate hike at 90% within the next 12 months. We offer solutions to protect you against interest rate hikes. Please consult with your trader.

Today should be relatively calm on the USD/CAD front, as no major data release is scheduled for North America. New Zealand central bank will get the attention tonight; although the official outlook is pointing at status quo, some analysts think that a tightening signal could be coming up. Australian jobs data will also be released tonight. Benoit Marcoux

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