Published: 2023-12-18T00:00:05.000Z

Asia Open - Overnight Highlights

FX Analyst

259

EMERGING ASIA

EM currencies perform individually against the USD as the greenback picked itself up after a slump in the previous day as the aftermaths of dovish FOMC. THB saw the largest gains of 0.53%, followed by INR 0.39%, PHP 0.24%, TWD 0.22%, MYR 0.07%, HKD 0.05%, IDR 0.03%; while the biggest loser is SGD 0.4%, CNH 0.15%, CNY 0.13% and KRW 0.08%.

USD/CNH is trading higher at 7.1346 compared to the 7.1236 at previous close. Onshore spot USD/CNY is trading higher at 7.1215 from 7.1119. 12 month NDF followed the offshore market and is trading higher at 6. 9744 compared to 6.9736 previous closed.

USD/IDR spot market is trading lower at 15493 from 15502 last closed. 1 month NDF is trading higher at 15522 from 15482 previous closed.

USD/INR onshore spot market is trading lower at 83.00 from 83.32. 1 month NDF is trading higher at 83.09 from 83.39 previously closed.

Major

The USD gained ground through the North American session, boosted by the comments from the Fed’s Williams, who suggested that the market had overreacted to the FOMC. Fed’s Bostic was also cautious about easing, though Goolsbee sounded more dovish. EUR/USD lost over half a figure to touch below 1.09, while USD/JPY made more modest gains above 142.
However, US data was generally weak. The Empire manufacturing index fell sharply into negative territory, and both industrial production and manufacturing PMI suggested softness, but the services PMI was better than expected.
BoC governor Macklem said 2% inflation was in sight, but said it was too early to cut rates and the CAD outperformed, with USD/CAD dropping modestly to 1.3370.

4Cast Ltd. and all of its affiliates (Continuum Economics) do not conduct “investment research” as defined in the FCA Conduct of Business Sourcebook (COBS) section 12 nor do they provide “advice about securities” as defined in the Regulation of Investment Advisors by the U.S. SEC. Continuum Economics is not regulated by the SEC or by the FCA or by any other regulatory body. This research report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Nonetheless, Continuum Economics has an internal policy that prohibits “front-running” and that is designed to minimize the risk of receiving or misusing confidential or potentially material non-public information. The views and conclusions expressed here may be changed without notice. Continuum Economics, its partners and employees make no representation about the completeness or accuracy of the data, calculations, information or opinions contained in this report. This report may not be copied, redistributed or reproduced in part or whole without Continuum Economics’s express permission. Information contained in this report or relied upon in its construction may previously have been disclosed under a consulting agreement with one or more clients. The prices of securities referred to in the report may rise or fall and past performance and forecasts should not be treated as a reliable indicator of future performance or results. This report is not directed to you if Continuum Economics is barred from doing so in your jurisdiction. Nor is it an offer or solicitation to buy or sell securities or to enter into any investment transaction or use any investment service.

Analyst Declaration
I,Cephas Kin Long Yung, the FX Analyst declare that the views expressed herein are mine and are clear, fair and not misleading at the time of publication. They have not been influenced by any relationship, either a personal relationship of mine or a relationship of the firm, to any entity described or referred to herein nor to any client of Continuum Economics nor has any inducement been received in relation to those views. I further declare that in the preparation and publication of this report I have at all times followed all relevant Continuum Economics compliance protocols including those reasonably seeking to prevent the receipt or misuse of material non-public information.