Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback as the USD gains on higher geopolitical tension between Iran and Israel. The largest losers are KRW 1.01%, followed by SGD 0.49%, PHP 0.47%, THB 0.29%, INR 0.21%, CNH 0.13%, IDR and CNY 0.09%, MYR and TWD 0.05%.

USD/CNH is trading higher at 7.1917 from 7.1820 previously closed. Onshore spot market is trading higher at 7.1868 from 7.1802. 12 month NDF followed both the on/offshore market and is trading higher at 7.0120 from 7.0055 previously closed.

USD/IDR spot market is trading higher at 16280 from 16265 previously closed. 1 month NDF is trading higher at 16360 from 16305 previously closed.

USD/INR onshore spot market is trading higher at 86.24 from 86.06. 1 month NDF is trading higher at 86.55 from 86.08 previously closed.

NA Session

Despite weak US data the USD was stronger on concerns over the Iran-Israel conflict, particularly after Trump demanded Iran’s unconditional surrender. Oil advanced and equities fell. USD/JPY rose to 145.25 from 144.70 while EUR/USD fell to 1.1485 from 1.1560. EUR/GBP was stronger near .8550 as GBP/USD fell over a big figure below 1.3450 but EUR/CHF was weaker near .9375 as USD/CHF saw a only a modest rise to .8165 from .8125, CHF also supported by risk off sentiment. AUD/USD fell well below .65 while USD/CAD rose well above 1.36 as riskier currencies suffered generally. 

May US retail sales fell by 0.9%, with declines of 0.3% ex autos and 0.1% ex autos and gasoline. May industrial prediction fell by 0.2% and while manufacturing rose by 0.1% manufacturing ex autos fell by 0.3%, June’s NAHB homebuilders’ index fell to 32 from 24, its weakest since December 2022.