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 only winner is THB by 0.09%; the largest losers are INR 0.57%, followed by MYR 0.56%, KRW & PHP 0.51%, IDR 0.37%, SGD 0.27%, CNH 0.22%, CNY 0.15%.

USD/CNH is trading higher at 7.1892 from 7.1735 previously closed. Onshore spot market is trading higher at 7.1832 from 7.1727. 12 month NDF followed both the on/offshore market and is trading higher at 7.0121 from 7.0001 previously closed.

USD/IDR spot market is trading higher at 16304 from 16243 previously closed. 1 month NDF is trading higher  at 16308 from 16235  previously closed.

USD/INR onshore spot market is trading lower at 86.08 from 85.60. 1 month NDF is trading lower at 86.23 from 85.70 previously closed.

NA Session

The USD corrected European gains in North America, though the correction lost momentum late in the session as Iran launched a retaliatory attack on Israel. USD/JPY was relatively resilient holding on to most of its earlier gains, but did slip back below 144. EUR/USD recovered to 1.1550 from 1.15 and GBP/USD reached as high as 1.36 from 1.3520 before correcting to 1.3560. EUR/GBP and EUR/CHF saw limited North American movement. With oil sustaining a sharp bounce USD/CAD fell below 1.36 though AUD/USD could not hold a move back above .65. 

The only US data release was a stronger than expected preliminary June Michigan CSI of 60.5 from 52.2 in May as tariff fears were reduced. The 1-year inflation expectation fell sharply to 5.1% from 6.6% though the 5-10 year view at 4.1% was down only marginally from 4.2%. UST yields picked up but equities were weaker, an attempt to recover from early weakness fading after the Iranian retaliation.