Muted Moves

An extremely quiet session for Asia FX with many markets closed for the LNY holiday period.

• CNH: Offshore yuan hovered between minor gains and minor losses, USD/CNH heads into the European session slightly higher at 6.4313. During the session there were reports that US President Biden had spoken with his Chinese counterpart Xi about trade and other issues.
• SGD: Spot USD/SGD has lost a handful of pips through the session as USD is offered in the later part of the session. The UK-Singapore FTA comes into effect today.
• INR: The rupee has strengthened, the rate playing catchup with USD weakness seen on Wednesday. Market looks ahead to special bond auction after the OMO yesterday.
• IDR: Rupiah is higher, though implied USD/IDR 1-month volatility dipped today, printing lowest levels in a year. The Indonesian Chamber of Commerce and Industry has been lobbying Pres Jokowi to allow private Covid-19 vaccinations.
• MYR: Ringgitt is hovering around neutral levels, dropping after data showed GDP fell 5.6% in 2020, Q4 GDP contracted 3.4% against expectations of a 3.1% decline.
• PHP: Peso unchanged and moving within a tight range ahead of BSP monetary policy announcement later today. The bank are not expected to change rates.
• THB: Baht has weakened slightly, losing a handful of pips gradually throughout the session. Focus turns to Thailand's GDP data, due next Monday.