Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the tariff man went quiet in the past two days before ramping up pressure on Canada and Mexico over the weekend. The biggest winner is PHP by 0.21%, followed by THB 0.11% and HKD 0.01%; the largest losers are IDR by 0.54%, CNH 0.38%, SGD 0.24% and INR by 0.08%.

USD/CNH is trading higher at 7.2934 from 7.2660 previously closed. Onshore spot market is closed. 12 month NDF followed the offshore market and is trading higher at 7.1129 compared to 7.1055 previously closed.

USD/IDR spot market reopened at 16260 from 16173 previously closed. 1 month NDF is trading higher at 16295 from 16260 previously closed.

USD/INR onshore spot market is trading higher at 86.62 from 86.55 previously closed. 1 month NDF is trading higher at 86.80 from 86.79 previously closed.

NA Session

There was not much reaction to the as expected 25bps ECB easing, or a 2.3% increase in Q4 US GDP which was a little below the published consensus but above some downgraded forecasts following Wednesday’s weak trade and inventory data. Initial claims were very low at 207k from 223k. 

The EUR did however see a spike during Lagarde’s press conference, EUR/USD peaking at 1.0467, though this faded leaving only modest gains around 1.0430. A spike in EUR/GBP to 8390 also corrected. USD/JPY saw slippage from around 154.50 to a low of 153.79 partially reversed, the moves consistent with those in UST yields.