Asia Open - Overnight Highlights

EMERGING ASIA

Most EM currencies are trading mostly weaker against the greenback as USD marches higher on the prospect of a potential trade deal. The largest loser is INR by 1.03%, followed by MYR 0.99%, KRW 0.91%, SGD 0.52%, PHP 0.38%, THB 0.37%, CNY 0.21%, CNH 0.2% and HKD 0.16%,; while the biggest winner is IDR by 0.25%.

USD/CNH is trading higher at 7.2429 from 7.2283 previously closed. Onshore spot market is trading higher at 7.2428 from 7.2275. 12 month NDF followed both the on/offshore market and is trading higher at 7.0628 compared to 7.0620 previously closed.

USD/IDR spot market is trading lower at 16495 from 16536 previously closed. 1 month NDF is trading higher at 16578 from 16542 previously closed.

USD/INR onshore spot market is trading higher at 85.71 from 84.83. 1 month NDF is trading higher at 86.14 from 85.01 previously closed.

NA Session

The GBP saw a brief dip on a 25bps BoE easing, but with the BoE proving less dovish than expected the GBP quickly more than fully erased its dip. EUR/GBP, after a brief bounce above .85, saw a sustained dip to .8470. GBP/USD however, after rising to 1.3340, saw a marginal fresh low for the day below 1.3240 as the USD saw broad based gains.USD strength was led by optimism on trade. The deal with the UK provided some support, but details showed only moderate benefits for each side with 10% US tariffs still mostly intact. The main boost came from comments from 

Trump suggesting that tariffs on China could be reduced if weekend talks went well, while he also recommended buying equities, which the market duly did. USD/JPY rallied to touch 146 from near 144.50, while EUR/USD fell to 1.1225 from above 1.13. USD/CAD rallied to 1.3925 from 1.3875 despite BoC Governor Macklem stating the tariff threat had eased somewhat, while AUD/USD saw lows below .64.