BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

THB Surges, Aided By Q1 GDP Beat, Steady Trends Elsewhere

ASIA FX
BulletEM BulletEmerging Market NewsHomepage

USD/Asia pairs are mixed for the most part, outside of strong THB gains. We have seen some modest USD support elsewhere but overall gains are muted at this stage. Baht is up 0.90%, aided by stronger than expected GDP figures for Q1. Still to come today we have Taiwan export orders and the current account balance. Tomorrow, South Korea consumer confidence is out, along with first 20-days of trade data for May as the main focus points.

  • USD/CNH is marginally higher for the session, last near 7.2370. Onshore spot has also risen a touch to 7.2300. Equity markets are higher, albeit modestly, as markets digest the recent property support measures. Onshore media expect mortgage rates to come down, while property developers also noted a pick up in weekend activity from China home buyers. Outside of this the yen is slightly weaker, likely curbing yuan sentiment to a degree.
  • 1 month USD/KRW is slightly higher, last around 1352, against earlier highs above 1355. We have tracked recent ranges in the first part of Monday dealing. Cross asset wise onshore equities are higher, the Kospi +0.55%, shrugging off a negative tech lead from the end of last week. Tomorrow the focus will rest on household inflation expectations and momentum in trade for the first 20-days of May.
  • USD/THB has fallen sharply. The pair was last under 36.90, around 0.9% stronger in baht terms for the session. This is fresh lows in the pair back to mid March. Part of this is catch up to weaker USD trends from late last week (post the onshore spot close). However, it has outperformed the rest of the USD/Asia bloc comfortably. This morning's Q1 GDP beat is a positive, with growth up 1.1% q/q, versus 0.6% forecast. Y/Y growth was at 1.5%, versus 0.8% forecast but slightly slower than the Q4 pace. Growth reflected a resilient consumption backdrop, with drags from government spending and investment. Given scope for government spending to improve, couple with the digital wallet rollout, this result may temper pessimism around the domestic growth backdrop, which could alleviate some pressure on BoT.
  • Elsewhere, SGD and MYR sit marginally higher against the USD. USD/MYR last near 4.6840, USD/SGD around 1.3440/45. Earlier Malaysian trade data was a little bit weaker than expected but still showed a recovery in export growth (to 9.1% y/y from -0.9%).
  • USD/PHP is tracking higher, last in the 57.75/80 region, but we remain below recent highs. USD/IDR was last just under 15980.
411 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

USD/Asia pairs are mixed for the most part, outside of strong THB gains. We have seen some modest USD support elsewhere but overall gains are muted at this stage. Baht is up 0.90%, aided by stronger than expected GDP figures for Q1. Still to come today we have Taiwan export orders and the current account balance. Tomorrow, South Korea consumer confidence is out, along with first 20-days of trade data for May as the main focus points.

  • USD/CNH is marginally higher for the session, last near 7.2370. Onshore spot has also risen a touch to 7.2300. Equity markets are higher, albeit modestly, as markets digest the recent property support measures. Onshore media expect mortgage rates to come down, while property developers also noted a pick up in weekend activity from China home buyers. Outside of this the yen is slightly weaker, likely curbing yuan sentiment to a degree.
  • 1 month USD/KRW is slightly higher, last around 1352, against earlier highs above 1355. We have tracked recent ranges in the first part of Monday dealing. Cross asset wise onshore equities are higher, the Kospi +0.55%, shrugging off a negative tech lead from the end of last week. Tomorrow the focus will rest on household inflation expectations and momentum in trade for the first 20-days of May.
  • USD/THB has fallen sharply. The pair was last under 36.90, around 0.9% stronger in baht terms for the session. This is fresh lows in the pair back to mid March. Part of this is catch up to weaker USD trends from late last week (post the onshore spot close). However, it has outperformed the rest of the USD/Asia bloc comfortably. This morning's Q1 GDP beat is a positive, with growth up 1.1% q/q, versus 0.6% forecast. Y/Y growth was at 1.5%, versus 0.8% forecast but slightly slower than the Q4 pace. Growth reflected a resilient consumption backdrop, with drags from government spending and investment. Given scope for government spending to improve, couple with the digital wallet rollout, this result may temper pessimism around the domestic growth backdrop, which could alleviate some pressure on BoT.
  • Elsewhere, SGD and MYR sit marginally higher against the USD. USD/MYR last near 4.6840, USD/SGD around 1.3440/45. Earlier Malaysian trade data was a little bit weaker than expected but still showed a recovery in export growth (to 9.1% y/y from -0.9%).
  • USD/PHP is tracking higher, last in the 57.75/80 region, but we remain below recent highs. USD/IDR was last just under 15980.