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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

Muted Moves


A quiet, directionless session with narrow ranges observed amid a lack of EM catalysts.

  • CNH: Offshore yuan is hugging a tight range, marginally weaker. The PBOC fix came in broadly in-line with sell side estimates. Data late yesterday showed China's foreign reserves rose to $3.2218tn in May from $3.198tn in April, the second month of increase.
  • SGD: Singapore dollar is flat, barely budging through the session. USD/SGD consolidated below the 1.3245% 76.4% retracement level, last down 1 pip at 1.3229. The June low of 1.3189 is now in focus for bears before targeting the 2021 low of 1.3157.
  • TWD: Taiwan dollar is slightly stronger, markets look ahead to CPI, WPI and trade data later in the session.
  • KRW: Won is weaker, reversing earlier gains. Data earlier showed the BoP current account balance narrowed to $1.909bn from $7.816bn, goods balance narrowed to $4.559bn from $7.92bn. Following the release the BoK said higher oil prices increased the price of imports.
  • MYR: Ringgit is slightly higher, the Straits Times ran a source report noting that "the heads of Malaysia's nine royal households are set to hold an emergency meeting next Wednesday (June 16), to discuss the country's Covid-19 crisis". The meeting will be preceded by the King's consultations with leaders of Malaysian political parties.
  • IDR: Rupiah is flat, Tourism Min Sandiaga Uno said that Bank Indonesia, Financial Services Authority and Investment Min will back the plan to reopen Bali in Jul and encourage tech companies to work from there. The gov't expects Bali's economy to return to growth by Q3/Q4.
  • PHP: Peso weakened, headline unemployment rate rose to 8.7% in April from 7.1% recorded in the prior month, while underemployment increased to 17.2% from 16.2%, which occurred alongside a fall in the participation rate to 63.2% from 65.0%. There were just two regions where unemployment reached double-digit levels.
  • THB: Baht is lower, Thailand achieved the target of administering more than 300,000 doses of a Covid-19 vaccine on the first day of its mass inoculation drive. AstraZeneca & Sinovac products were used as the country began its vaccination campaign on Monday.