Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the greenback reversed its earlier gains on higher initial claim figure. KRW saw the largest losses of 0.52%, followed by TWD 0.14%; the biggest winners are SGD 0.22% CNH 0.1%, CNY 0.07%, THB 0.06%, HKD 0.04%, INR and MYR 0.01%.

USD/CNH is trading lower at 7.2223 compared to the 7.2297 at previously closed. Onshore spot USD/CNY is trading lower at 7.2199 from 7.2246 previously closed. 12 month NDF followed both the on/offshore market and is trading lower at 7.0210 compared to 7.0269 previously closed.

USD/IDR spot market is closed. 1 month NDF is trading lower at 16036 from 16079 previously closed.

USD/INR onshore spot market is trading unchanged at 83.51. 1 month NDF is also trading unchanged at 83.56.

NA Session

GBP/USD slipped to 1.2450 from 1.2490 on the BoE decision, where rates were left unchanged but Deputy Governor Ramsden joined Dhingra in voting for a cut, leaving a 7-2 count, and CPI forecasts were revised lower. EUR/GBP bounced to touch .8620.

A bounce in US initial claims to 231k, the highest since August, from 209k, sent the USD lower, and USD losses continued to build through the session with no correction. EUR/USD rallied 50 pips to 1.0780 while USD/JPY fell 40 pips to 155.50. GBP/USD moved up to 1.2525, more than reversing its post-BoE dip. AUD/USD moved well above .66 while USD/CAD fell well below 1.37.  Bank of Canada Governor Macklem stated that the Canadian financial system remained resilient after the BoC’s Financial Stability Report.