Asia Open - Overnight Highlights
EMERGING ASIA
EM currencies are trading individually against the greenback as the broad risk sentiment chops around. The biggest winners are PHP by 0.44%, INR 0.09%, CNY 0.08% and CNH 0.01%; while the largest losers are THB 0.51%, MYR 0.39%, IDR 0.33%, KRW 0.29%, SGD 0.22% and HKD 0.02%%.
USD/CNH is trading lower at 6.9405 from 6.9412 previously closed. Onshore spot market is trading lower at 6.9384 from 6.9439. 12 month NDF diverged from both the on/offshore market and is trading higher at 6.8061 from 6.8060 previously closed.
USD/IDR spot market is trading higher at 16830 from 16775 previously closed. 1 month NDF is trading higher at 16890 from 16811 previously closed.
USD/INR onshore spot market is trading lower at 90.35 from 90.43 previously closed. 1 month NDF is trading lower at 90.45 from 90.55 previously closed.
NA Session
The USD saw modest gains overall after firming into the close, but was particularly strong versus the GBP. Already under pressure given uncertainty over PM Starmer’s future, the GBP slipped after the BoE meeting delivered a surprisingly close vote of 5-4 for steady policy, raising the risk for a move in March. The ECB left rates as expected but did express concern over the risks of EUR appreciation. GBP/USD fell to 1.3540 from 1.3620 while EUR/GBP rose to .87 from .8660. EUR/USD was unable to sustain a move above 1.18 and ended back at its lows near 1.1780.
US data raised concern over labor market weakness, with the Challenger report showing highest layoffs total for January since 2009, and initial claims up to 231k from 209k, though weather may have played a part in this. Later December’s JOLTS report showed a third straight decline in job openings to the lowest level since 2020. UST yields, equities and oil were all weaker but the USD found support after some early North American slippage, USD/JPY returning to the upper half of its range above 157. Late USD gains saw AUD/USD near its .6940 low and USD/CAD near its 1.37 high after spending most of the session in narrow ranges.