FX Pulse
OVERNIGHT
The U.S dollar finished higher on Tues, driven by a reiteration of March rate hike on the table by Philadelphia Fed President Harker (voter). Odds have improved to 36% from 34% a day earlier for a 25bp rate hike in the Mar 14-15 FOMC meeting.
EUR/USD sank the most in over a month, by 0.7% to 1.0536 as Marie Le Pen-related risks are gradually priced in. Bids are expected ahead of the key 1.0500 support and a breach below looks set to open up 11-Jan’s low of 1.0454. GBP/USD rebounded off range lows near 1.2400 for a third straight day to finish marginally higher at 1.2473, most resilient G10 currency against the greenback. U.K PM May’s Brexit Bill passed another hurdle early Wed after the House of Lords agreed without a vote to allow the Bill move to a next stage where amendments will be debated (on 27-Feb and 1-Mar). USD/JPY rose for a second day, this time by 0.5% to 113.68, capped by offers near 113.80 ahead of the big 114 figure. AUD/USD broke to a marginal low of 0.7650 in early Europe but managed to pare most losses to finish 0.7675.
Asean currencies finished flat to lower on Tues as the USD tone improved. MYR and THB finished little changed at 4.4570 and 35.04 per dollar respectively. IDR touched the lowest levels since early Feb, at 13,379 per dollar before closing at 13,373. USD/SGD touched as high as 1.4232 before paring half of the gains to finish 1.4206 (+0.2%).