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ASIA: Asia FX Quiet Ahead of the FED and the BI

ASIA
EM BulletAPACBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • The BBG Asia dollar Index was marginally lower on a day of light volumes ahead of the Federal Reserve’s decision on monetary policy tonight.
  • Today Asia sees another key central cank, Bank Indonesia, deliver its decision also.
  • Whilst the FED is expected to cut, the market has speculated as to the size of the cut .
  • A 25bp cut is fully factored in yet  in recent days a growing belief that the first cut in 4 years could be 50bps.
  • Having touched 142.50, Yen has retraced some of those gains to be trading at 142.50.  This is still ahead of last night's close of 141.39
  • The USD/CNY fixing printed at 7.087, versus a Bloomberg consensus of 7.0966.
  • MYR was lower for the day at 4.2417 whilst IDR was heading in the opposite direction higher at 15,345.
  • Given a near 50% probability of a 50bps Fed cut now priced in, a 25 bp cut could see a material unwind in bond positions which would likely have a flow on effect into currencies.
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  • The BBG Asia dollar Index was marginally lower on a day of light volumes ahead of the Federal Reserve’s decision on monetary policy tonight.
  • Today Asia sees another key central cank, Bank Indonesia, deliver its decision also.
  • Whilst the FED is expected to cut, the market has speculated as to the size of the cut .
  • A 25bp cut is fully factored in yet  in recent days a growing belief that the first cut in 4 years could be 50bps.
  • Having touched 142.50, Yen has retraced some of those gains to be trading at 142.50.  This is still ahead of last night's close of 141.39
  • The USD/CNY fixing printed at 7.087, versus a Bloomberg consensus of 7.0966.
  • MYR was lower for the day at 4.2417 whilst IDR was heading in the opposite direction higher at 15,345.
  • Given a near 50% probability of a 50bps Fed cut now priced in, a 25 bp cut could see a material unwind in bond positions which would likely have a flow on effect into currencies.