Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly stronger against the greenback as USD chops lower throughout all sessions. The biggest winners are PHP 0.87%, followed by TWD 0.64%, IDR 0.45%, THB 0.26%, SGD 0.18%, CNH 0.06%, INR 0.03% and CNY by 0.01%; while the largest losers is MYR by 0.08% and KRW 0.03%.

USD/CNH is trading lower at 7.1810 from 7.1853 previously closed. Onshore spot market is trading lower  at 7.1814 from 7.1824. 12 month NDF followed both the on/offshore market and is trading lower at 7.0182 from 7.0212 previously closed.

USD/IDR spot market is trading lower at 16290 from 16363 previously closed. 1 month NDF is trading lower at 16320 from 16362 previously closed.

USD/INR onshore spot market is trading lower at 87.70 from 87.73. 1 month NDF is trading lower at 87.56 from 87.85 previously closed.

NA Session

The USD was slightly firmer through most of the session before a late dip as Trump nominated Council of Economic Advisers Chair Stephen Miran to fill a Fed vacancy through January 2026. The USD saw marginal gains against the commodity currencies. USD/JPY was slightly weaker at 147.15 and EUR/USD little changed near 1.1650. GBP sustained its post-BoE gains, GBP/USD at 1.3430 and EUR/GBP at .8670. 

US data had little impact. Initial claims rose to 226k from 219k while Q2 saw a solid 2.4% rise in non-farm productivity with a moderate 1.6% rise in unit labor costs. Fed’s Bostic expressed caution over inflation risks while Bloomberg reported that Governor Christopher Waller was now favorite to be the next Fed Chairman.