Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the greenback slips on rising Euro and the bounce in U.S. Treasury Yields are being faded. THB saw the largest win of 0.58%, followed by PHP 0.3%, TWD 0.23%, SGD 0.22%, IDR 0.15%, MYR 0.06%, CNY 0.04% and HKD 0.03%, CNY 0.02% and TWD 0.01%; the only losers is INR 0.12%.

USD/CNH is trading unchanged at 7.2593 previously closed. Onshore spot USD/CNY is trading lower at 7.2450 than 7.2477 previously closed. 12 month NDF followed the offshore market and is trading lower at 7.0400 compared to 7.0408 previously closed.

USD/IDR spot market is trading lower at 16263 than 16287 previously closed. 1 month NDF is trading lower at 16249 from 16322 previously closed.

USD/INR onshore spot market is trading higher at 83.47 from 83.37 previously closed. 1 month NDF is trading higher at 83.53 from 83.48 previously closed.

NA Session

EUR/USD bounced on the ECB decision, briefly reaching 1.09, with the 25bps rate cut fully discounted and markets noting a lack of forward guidance. However, with Lagarde confirming the earlier message from Lane that tighter policy is still feeding through and that real rates have risen the move above 1.09 was brief. 

EUR/USD however remained above pre-ECB levels and with the USD generally softer into the afternoon a move back to near 1.09 was seen. EUR made modest gains versus GBP, CHF and SEK, but gains in EUR/NOK were erased.

US data was on the soft side, initial claims rising to 229k from 222k though possibly influenced by the Memorial Day holiday, and Q1 unit labor costs revised down to 4.0% from 4.7%. USD/JPY fell to near 155.50 from near 156.20 leaving EUR/JPY down on the day. AUD and CAD largely erased earlier losses seen versus the USD.