Dovish Central Banks & Coronavirus Dampen Sentiment

The greenback gained a handful of pips in a quiet pre-NFP session, risk tone slightly negative.

• CNH: Offshore yuan is flat, USD/CNH has stuck to a tight range since Friday last week, keeping a 200 pip range and coiling as the week goes on. One-month CNH implied volatility slid for a sixth day on Thursday to intraday lows of 4.1125%, denoting the longest decline since June. Trade data is due over the weekend.
• SGD: Singapore dollar is weaker, but off worst levels of the day. There were 96 coronavirus cases in the past-24 hours, below 100 for a third day. The government are due to review social distancing measures soon.
• TWD: Taiwan dollar is slightly weaker, snapping a four-day winning streak. There were reports that Taiwan to extend Covid level 2 alert until Aug. 23.
• KRW: Won is slightly stronger but off best levels of the session. There were 1,704 new coronavirus cases in the past 24 hours, it was reported earlier that South Korea will extend its tough social distancing restrictions for two more weeks through Aug. 22
• MYR: Ringgit is weaker, Malaysia reported a record 20,596 new Covid-19 cases Thursday while UMNO sources told the Star that at least 19 lawmakers will meet with Dep PM Ismail Sabri today to decide whether to stick with PM Muhyiddin.
• IDR: Rupiah is lower, FinMin Indrawati said that economic expansion could hit the upper end of the government's +4.0%-5.7% Y/Y forecast range this quarter if the outbreak of coronavirus Delta variant is contained.
• PHP: Peso fell, dropping toward a 13-month low. The capital region started a two-week lockdown, while Central Bank said this week a reserve-ratio cut is on the table. The trade deficit widened more than expected.
• THB: Baht weakened, a Bangkok court will today decide on revoking the government's order, which restrained reporting on Covid-19 news. The country reported a record 21,379 new cases and a record 191 deaths today, while officials flagged Thursday that 100,000 Bangkok residents remain in home isolation.