Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback as the USD slumped in earlier sessions before retracing partial losses in late NA session. The biggest winner is KRW by 0.67%, followed by THB 0.61%, MYR 0.46%, PHP 0.25%, INR 0.13%, IDR & TWD 0.09%, SGD 0.02% and HKD 0.01%; while the largest loser is CNH by 0.07%.

USD/CNH is trading higher at 7.1761 from 7.1713 previously closed. Onshore spot market is trading lower at 7.1777 from 7.1780. 12 month NDF followed the offshore market and is trading higher at 7.0023 from 6.9920 previously closed.

USD/IDR spot market is trading lower at 16284 from 16295 previously closed. 1 month NDF is trading lower at 16273 rom 16316 previously closed.

USD/INR onshore spot market is trading lower at 85.79 from 85.90. 1 month NDF is trading lower at 85.98 from 86.03 previously closed.

NA Session

There was little immediate impact to the as expected 25bps ECB easing, but uncertainty over the timing of the next move gave the EUR a lift, EUR/USD to a high of 1.1495 from 1.1420. EUR/GBP rose to near .8450 from .8415 and EUR/CHF to near .94 from .9360. USD weakness was assisted by a bounce in initial claims to 247k from 239k, though April’s trade deficit of $61.6bn from $138.3bn in March was even lower than expected and Q1 unit labor costs were revised up to 6.6% from 5.7%.  

A dip in USD/JPY below 143 on the data was however quickly reversed, with equites lifted, albeit temporarily, by the news that a conversation took place between Trump and China’s Xi, which Trump later described as good. USD/JPY peaked just below 144 before a modest correction. As the USD picked up EUR/USD partially revered its gains, falling to 1.1440, as did EUR/GBP and EUR/CHF. EUR/JPY advanced to 164.30 from 163.50.  Like GBP and CHF, AUD and CAD saw gains versus the USD erased.