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FOREX: CNH Slightly Stronger, Overnight Vol Very High Ahead Of US Election

FOREX
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In North Asia FX, trends are mixed. CNH is higher aided by the better than forecast Caixin services PMI, which underpins some better economic momentum as we progress through Q4. Onshore China equities are up strongly, the CSI 300 firmer by more than 2%. On-going speculation continues around what the NPC may deliver as well, with BBG noting that restructuring local government debt is on the agenda. 

  • USD/CNH may be lower if not for the proximity of the US election. The pair was last near 7.1050, still comfortably above Monday lows. implied overnight vols for USD/CNH are above 31%, just off record highs.
  • Spot USD/KRW has gravitated higher, last near 1379, around 0.20% weaker in won terms. Earlier data showed both a dip in FX reserves and a softer inflation outcome. Headline CPI is comfortably below the BoK's 2% target, which could make the end Nov policy meeting a live one.
  • Spot USD/TWD is up slightly, but is holding just under 32.00 at this stage. 

 

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In North Asia FX, trends are mixed. CNH is higher aided by the better than forecast Caixin services PMI, which underpins some better economic momentum as we progress through Q4. Onshore China equities are up strongly, the CSI 300 firmer by more than 2%. On-going speculation continues around what the NPC may deliver as well, with BBG noting that restructuring local government debt is on the agenda. 

  • USD/CNH may be lower if not for the proximity of the US election. The pair was last near 7.1050, still comfortably above Monday lows. implied overnight vols for USD/CNH are above 31%, just off record highs.
  • Spot USD/KRW has gravitated higher, last near 1379, around 0.20% weaker in won terms. Earlier data showed both a dip in FX reserves and a softer inflation outcome. Headline CPI is comfortably below the BoK's 2% target, which could make the end Nov policy meeting a live one.
  • Spot USD/TWD is up slightly, but is holding just under 32.00 at this stage.