Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback as the USD continues to slide along U.S. Treasury Yields. The biggest winner is KRW by 1.24%, followed by MYR 0.99%, INR 0.92%, THB 0.76%, IDR 0.67%, PHP 0.62%, SGD 0.61%, CNH 0.44%, CNY 0.34% and TWD 0.11%; while the largest loser is HKD by 0.07%.

USD/CNH is trading lower at 7.1726 from 7.2044 previously closed. Onshore spot market is trading lower at 7.1810 from 7.2056. 12 month NDF followed both the on/offshore market and is trading lower at 7.0006 compared to 7.0242 previously closed.

USD/IDR spot market is trading lower at 16218 from 16328 previously closed. 1 month NDF is trading lower at 16265 rom 16380 previously closed.

USD/INR onshore spot market is trading lower at 85.21 from 86.00. 1 month NDF is trading lower at 85.30 from 86.15 previously closed.

NA Session

Comments from Trump threatening 50% tariffs on the EU from June 1 and 25% tariffs on imported iPhones alarmed markets though a dip in UST yields was largely reversed and equity losses were modest, with many doubting whether any such tariffs would last long if implemented. EUR/USD slipped from 1.1375 to 1.13 before reversing most of its losses. USD/JPY slipped to 142.50 from 143.40 and was subsequently fairly stable. The USD was weak elsewhere with AUD//USD testing .65, USD/CAD falling a big figure to 1.3720. EUR/GBP saw only marginal losses but EUR/CHF fell to .9330 from .9370. 

March Canadian retail sales rise by 0.8% but fell by 0.7% ex autos. US April new home sales saw a strong 10.9% increase to 743k. Fed’s Goolsbee stated that the bar to move rates was high.