G10 Little Changed, Rupiah Weakening Ahead Of BI Decision

With the US closed yesterday and few events today, currencies have generally stayed in narrow ranges. The US dollar is slightly higher with the BBDXY index at 1265.12.

• Despite stronger-than-expected Q1 GDP, NZDUSD is now flat on the day at 0.6133 after falling to 0.6125 following the post-data high of 0.6148.
• AUDUSD is down slightly at 0.6671 after trading between 0.6667 and 0.6678. AUDNZD is also lower at 1.0876 following a low of 1.0852.
• USDJPY is little changed at around 158.13, following a low of 157.92 and close to the intraday high.
• Ahead of today’s BoE decision GBPUSD is around 1.2714. The SNB also meets and USDCHF is 0.8838. EURUSD is steady at 1.0742.
• The USDCNY fix today was 88pips wider than yesterday. USDCNH rose to 7.2877 following the announcement, but is now around 7.2842. The 1- and 5-year LPRs were unchanged.
• Bank Indonesia (BI) is expected to keep rates at 6.25% today, but there is a material risk of a hike given that USDIDR is rising again and is currently around 16422, above the June 14 high and up 2.7% since the May 22 meeting. It reached a high of 16425 earlier today. This is likely to keep BI sounding hawkish and focussed on FX stability (see MNI BI Preview June 2024).
• USDKRW is up 0.2% at 1384.25 and has oscillated around 1384 for much of the session. The won was pressured by the softer yuan.
• Later the Fed’s Kashkari and Barkin speak and the BoE & SNB decisions are announced. The eurogroup meeting also takes place. In terms of data, US Q1 current account, May housing starts/permits, June Philly Fed and jobless claims print.