FX Update: The dollar recovered intraday losses
FX Update: The dollar recovered intraday losses in Asia. Expectations for a $1 tln fiscal package from Trump remains at play, while a surge in oil prices is added further bullish fuel to equity markets. All of the main U.S. stock indices -- the Dow, S&P 500, Nasqdaq and the Russell 2000 -- closed at record highs yesterday, a feat last achieved on December 31 1999, according to Bloomberg. EUR-USD lifted to a 1.0649 high before ebbing back to the low 1.06s, USD-CAD recouped toward the mid 1.34s after testing the waters below 1.3400 and Cable skipped back under 1.2500. USD-JPY dove to a low of 110.26 during the early Tokyo session before rebounding back above 111.00. The drop had been driven by a bout of save haven yen buying as markets reacted to news of two earthquakes, one being a 7.4 magnitude hit off the coast of the Fukushima prefecture in Japan and the other a 5.6 magnitude quake off the north island of New Zealand. There have been no reports of serious damage, and the yen unwound its safe-haven premium while the Nikkei 225 stock index recovered from intraday losses, with the Nikkei 225 finishing 0.3% for the better at its besting closing level since the first week of January.