Asia Open - Overnight Highlights

EMERGING ASIA
EM currencies perform individually against the USD as the greenback remains choppy. IDR saw the largest losses of 0.73%, followed by PHP 0.41%, CNH 0.25%, CNY 0.22%, THB 0.1 and SGD 0.04%; the biggest loser is TWD by 0.11%, KRW 0.10% and INR 0.02%.
USD/CNH is trading higher at 7.1799 compared to the 7.1623 at previous close. Onshore spot USD/CNY is trading higher 7.1739 compared to the 7.1580 at previous close. 12 month NDF followed both the on/offshore market and is trading higher at 6.9875 compared to 6.9821 previous closed.
USD/IDR spot market is trading higher at 15826 from 15713 previously closed. 1 month NDF is trading higher at 15817 from 15724 previous closed.
USD/INR onshore spot market is trading lower at 83.11 from 83.13 previously closed. 1 month NDF is trading unchanged at 83.24
NA Session
The USD gained ground through the North American session, with EUR weakness the main theme on the back of what was perceived as a less hawkish press conference after the ECB meeting from president Lagarde. The ECB left rates unchanged as expected, but acknowledged the decline in inflation had continued, and admitted risks to growth to the downside. EUR/USD fell by more than half a figure to 1.0830. EUR/GBP fell from .8560 to .8530 and EUR/CHF returned to .94 after earlier rising to .9420.
The USD also initially fell against the JPY after the US GDP data, dropping to 147.20, as US yields fell even though the Q4 GDP data was on the strong side of expectations, at 3.3% annualised. The decline in US yields and the USD may have related to the lower than expected GDP price index of 1.5%, even though the core PCE deflator was steady as expected at 2.0%. An upward correction in initial claims 214k may also have played a pat though this did no more than offset last week’s very low 189k outcome. However, USD/JPY recovered to opening levels by the end of the session. Despite the USD being stronger overall, USD/CAD was weaker, falling below 1.35.