Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback as the USD rebound continues. The biggest losers are THB by 1%, TWD 0.5%, KRW 0.46%, SGD 0.45%, MYR 0.41%, IDR 0.21%, CNH 0.2%, HKD 0.1%, CNY 0.06% and INR 0.04%; while the largest winner is PHP by 0.12%.

USD/CNH is trading higher at 6.9584 from 6.9447 previously closed. Onshore spot market is trading higher at 6.9568 from 6.9521. 12 month NDF followed the offshore market and is trading higher at 6.8301 from 6.8157 previously closed.

USD/IDR spot market is trading higher at 16786 from 16755 previously closed. 1 month NDF is trading lower at 16786 from 16798 previously closed.

USD/INR onshore spot market is trading higher at 91.99 from 91.95 previously closed. 1 month NDF is trading lower at 91.86 from 91.98 previously closed.

NA Session

With former Governor Kevin Warsh confirmed as Trump’s choice for Fed Chair, the USD strengthened, while gold and silver plunged. Equities came under some pressure and UST yields edged lower. USD/JPY rose to 154.65 from 154 while EUR/USD fell to near 1.1850 from 1.1925 with little movement in EUR/GBP or EUR/CHF. AUD/USD found support below .6950 while USD/CAD advanced to 1.36.

US PPI was stronger than expected with a 0.5% December increase, 0.7% ex food and energy. Later the Chicago PMI bounced sharply to 54.0 in January from 42.7. Fed’s Bostic and Musalem argued against further easing while Waller and Miran showed differing reasons for their dovish dissents at the latest meeting, with Waller more concerned about downside labor market risks than Miran. Unchanged November Canadian GDP was weaker than expected, but December