Morning Report APAC: Asia drifts as caution reigns over Syria tensions
- President Trump warned Russia to "get ready" for a US missile strike in Syria
- Theresa May reportedly moved British submarines within the range of Syria
- Saudi Arabia said it intercepted a ballistic missile over Riyadh
- The Dow fell 218 points and S&P 500 fell 14 points
- Gold surged and oil prices continued to rise
- Asia traded sideways in morning trade
By Saxo APAC Sales Trading
Economic data of the day (Singapore Time)
0830 – JN – Kuroda speaks at Branch Managers Meeting
0845 – CH – PBOC Governor Yi Gang speaks at IMF/PBOC conference in Beijing
1430 – UK – BOE’s Ben Broadbent speaks in Sydney
2015 – EC – ECB's Benoît Cœuré speaks in Paris
0000 – EC – ECB’s Jens Weidmann speaks in Berlin
0300 – CA – Mark Carney speaks at Canada Growth Summit in Toronto
0500 – US – Fed’s Kashkari speaks in Moderated Q&A in Minneapolis
Geopolitics: President Trump warned Russia to "get ready" for a US missile strike in Syria, tweeting that relations with Moscow have never been worse. The Kremlin fired back, saying it doesn't support "Twitter Diplomacy". A Russian lawmaker said senior military officers were in contact with the US Joint Chiefs of Staff.
Saudi Arabia said it intercepted a ballistic missile over Riyadh and shot down two drones in another part of the country, in the latest attacks by pro-Iranian Yemeni rebels. Blasts were heard in the capital.
US Treasuries rallied on the back of these geopolitical risk, Gold is up 1% (was 2% at a certain point last night), the UST curve is flattening even more with 2s10s now trading at 47.2 bps, 5s30s at 40 bps, and equities dropped from 0.6% to 0.9%.
G10 was very quiet overnight despite all the geopolitical risks. USDCAD was lower on the back of higher oil. The trend lower is very strong and the main support is only at 1.2470.
USDJPY was offered but is still above the support level of 106.55.
Emerging Markets: USDRUB continues to be very volatile and the interbank liquidity disappeared. We are seeing though some interests and inflows in the bond market at this level.
Foreign exchange movements
The Kremlin fired back after Trump's tweet, saying it doesn't support "Twitter Diplomacy". Photo: Shutterstock
– Edited by Susan McDonald
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