Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as the tariff man ramped up pressure on Canada and Mexico over the weekend. The only winners are THB by 0.16% and INR 0.01%; the largest losers are KRW by 1.64%, MYR 1.47%, CNH 0.39%, SGD 0.3%, IDR 0.25%, PHP 0.11% and HKD by 0.01%.

USD/CNH is trading higher at 7.3220 from 7.2934 previously closed. Onshore spot market is closed. 12 month NDF followed the offshore market and is trading higher at 7.1420 compared to 7.1129 previously closed.

USD/IDR spot market reopened at 16305 from 16256 previously closed. 1 month NDF is trading higher at 16377 from 16295 previously closed.

USD/INR onshore spot market is trading higher at 86.61 from 86.62 previously closed. 1 month NDF is trading higher at 86.88 from 86.80 previously closed.

NA Session

Data did not deliver much response. The US Employment Cost Index rose an as expected 0.9% in Q4. December’s personal income and spending report confirmed Q4 totals seen in the GDP release, though core PCE prices were soft before rounding at 0.156%, and that was later welcomed by Fed’s Goolsbee. November Canadian GDP was weaker than expected at -0.2%, but a preliminary estimate for a 0.2% increase was made for December. 

The USD saw some early losses, notably versus EUR, GBP and AUD as equites proved resilient to tariff worries. The USD then took a hit on a Reuters report that tariffs would be postposed to March1. USD/CAD, having earlier reached 1.4550 fell sharply below 1.44, while EUR/USD, which earlier had seen a low of 1.0360, hit a high of 1.0434. However, that move was reversed when the White House stated the tariffs would go into effect on February 1, and the USD moved back to near earlier highs.  USD/JPY saw fresh highs for the day above 155. Earlier equity strength was also erased.