Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as the USD chopped higher on Trump's policy uncertainty, especially with Canada. The largest winners are INR 0.26%, followed by PHP 0.08%; while the biggest losers are KRW 0.59%, THB 0.44%, SGD 0.14%, CNH 0.12%, CNY 0.07% and TWD 0.02%.

USD/CNH is trading higher at 7.1726 from 7.1640 previously closed. Onshore spot market is trading higher at 7.1727 from 7.1685. 12 month NDF followed both the on/offshore market and is trading higher at 7.0014 from 6.9971. previously closed.

USD/IDR spot market is trading lower at 16195 from 16209 previously closed. 1 month NDF is trading higher at 16251 from 16208 previously closed.

USD/INR onshore spot market is trading lower at 85.48 from 85.71. 1 month NDF is trading lower at 85.61 from 85.79 previously closed.

NA session 

The USD was generally marginally stronger, with the biggest move coming on USD/CAD, which broke above 1.37 after Trump broke off trade negotiations with Canada citing Canada’s Digital Service Tax, and stated Canada would receive its tariff level in the next seven days. Otherwise, USD gains were modest. USD/JPY gains stalled ahead of 145. EUR/USD found support below 1.17 after an early move above 1.1750. GBP/USD saw a brief move below 1.37 while AUD/USD fell to .6525 from .6550. EUR/GBP/ was firmer peaking above .8550 while EUR/CHF and EUR/SEK largely erased European losses. 

May US core PCE prices were marginally stronger than expected but this had little impact with personal income and personal spending both weak at -0.4% and -0.1% respectively. April Canadian GDP fell by 0.1% with a similar decline projected for May but this was not a major factor in CAD slippage.