Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the greenback continue to correct the recent weakness. IDR saw the largest losses of 0.35%, followed by SGD and THB 0.26%, KRW 0.24%, MYR 0.11%, INR and CNH 0.08%, HKD 0.03%; the biggest winners are PHP 0.11% and TWD 0.02%.

USD/CNH is trading higher at 7.2775 from 7.2720 previously closed. Onshore spot USD/CNY is trading unchanged at 7.2621. 12 month NDF followed the onshore market and is trading higher at 7.0779 compared 7.0700 to previously closed.

USD/IDR spot market is trading higher at 16155 from 16100 previously closed. 1 month NDF is trading higher at 16198 from 16156 previously closed.

USD/INR onshore spot market is trading higher at 83.65 from 83.59 previously closed. 1 month NDF is trading higher at 83.76 from 83.67.

NA Session

There was little FX reaction to the ECB decision to leave rates unchanged as expected with the statement fairly neutral. US data was mixed with initial claims bouncing to 234k from 223k though but an unexpectedly strong July Philly Fed index of 13.9 from 1.3, also generating little response, though with the claims rise seen influenced by Hurricane Beryl the Philly Fed may have been more significant. ECB’s Lagarde said that risks to growth were on the downside and the September decision was wide open.

AS the session built the USD saw broad based gains, particularly in late trade when UST yields picked up. EUR/USD fell below 1.09 from 1.0935 with post-ECB dips in EUR/GBP and EUR/CHF reversing. EUR/JPY made modest gains as USD/JPY rose from near 156.50 to 157.40. Equities were weaker and AUD/USD slipped to .67 from .6740 while USD/CAD rose to 1.3715 fr9om 1.3680.