June 02, 2022 02:22 GMT
USD/Asia gains have been across the board. Equity sentiment remains on the backfoot, while the JPY is outperforming modestly against the USD and on a cross basis. This is supporting the modest risk-off theme from equities.
- US yields have edged back up slightly, with no follow through from the earlier oil induced softness. Brent crude remains weaker on the day. Besides the oil supply headlines, macro headline flow has been fairly limited.
- USD/CNH hasn't been able to sustain a break above 6.7100, but is still threatening to do so. The USD/CNY fixing bias remains close to neutral.
- Spot USD/KRW is up over 1% to be tracking above 1251. This reflects catch up given spot markets were closed yesterday. The 1 month USD/KRW NDF is also 0.30% higher form NY closing levels. Earlier, the Korean PMI edged down to 51.8 from 52.1 last month.
- Elsewhere, USD gains are more modest, USD/TWD and USD/SGD are both up 0.10%, while USD/MYR is around 0.20% higher.