Published: 2023-12-15T00:00:04.000Z

Asia Open - Overnight Highlights

byCephas Kin Long Yung

FX Analyst
35

EMERGING ASIA

EM currencies perform stronger against the USD as the greenback slumped after FOMC decision and the downtrend is continued throughout sessions. THB saw the largest gains of 2.18%, followed by KRW 1.91%, IDR 1.05%, CNY 0.83%, MYR 0.75%, TWD 0.64%, PHP 0.49%, SGD 0.42%, CNH 0.2%, IDR 0.09% and HKD 0.05%.

USD/CNH is trading lower at 7.1236 compared to the 7.1384 at previous close. Onshore spot USD/CNY is trading lower at 7.1119 from 7.1709. 12 month NDF followed the offshore market and is trading lower at 6.9736 compared to 6.9651 previous closed.

USD/IDR spot market is trading lower at 15502 from 15661 last closed. 1 month NDF is trading lower at 15482 from 15449 previous closed.

USD/INR onshore spot market is trading lower at 83.32 from 83.40. 1 month NDF is trading higher at 83.39 from 83.36 previously closed.

Major

EUR/USD and GBP/USD both gained close to 1% through the North American session, as the ECB and BoE both indicated somewhat more hawkish policy stances than the FOMC had on Wednesday. The ECB’s staff forecasts made modest downward revisions to inflation and growth, but Lagarde indicated that these were based on somewhat higher rates than are currently extant, and said that some inflation drivers remained strong. The Bank of England also said rates would remain high for an extended period, and three MPC members continued to vote for a further rate hike. 
The USD gained some brief support from weaker than expected jobless claims data and stronger than expected retail sales, but EUR/USD extended gains beyond 1.10. USD/JPY was little changed near 141.60, with AUD/USD also little changed at 0.6715. But USD/CAD fell half a figure to 1.34.

 

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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.