New Fed Chair Yellen’s clear message of continuity of Fed policy has helped push equities and EM Asia currencies higher across the board. The Nikkei is up 0.7%, the Hang Seng rallied 1.1%, Kospi is up 0.3% and Shanghai is up marginally. S&P futures have risen slightly.
EURUSD edged slightly lower to 1.3628 after falling in the New York afternoon, while USDJPY has largely held onto overnight gains to 102.55. AUDUSD has risen to 0.9051, its highest level since 14 Jan. Almost all EM Asia currencies have rallied, led by a 0.6% rise in the KRW to 1064.78 to the dollar. The IDR, PHP, and TWD have risen 0.4%, 0.3%, and 0.2% respectively. USDCNY fixed 9pips higher to 6.1078, essentially continuing its sideways grind.
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Credit Suisse