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ASIA FX: Quiet Ahead of the FED.

ASIA FX
GlobalEM BulletBulletAPACEmerging Market NewsRegion
  • Asian currencies had a very quiet start to the week given holidays in Indonesia, Malaysia, China, Japan and South Korea.
  • Markets have agonized for some time about the upcoming change in monetary policy by the Federal Reserve, as it moves to the next phase of the cycle with an interest rate cut.
  • With a 25bps cut priced in, last week saw a jump in the probability of the first cut in four years being 50bps cut.
  • The Yen briefly traded through 140 against the dollar this morning as the BOJ comments on rate rises help to extend the currency’s rally to the strongest level in over a year.   
  • With the exception of Bank Indonesia (whose next meeting is the day before the Federal Reserve), the other major Central Bank meetings are don’t start until next month.
  • The Central Bank’s in the region in this cycle have done a good job of strengthening their currencies, whilst accumulating reserves and likely now are in the fortuitous position of waiting for the FED before making the decisions necessary for their respective currencies at later stages this year. 
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  • Asian currencies had a very quiet start to the week given holidays in Indonesia, Malaysia, China, Japan and South Korea.
  • Markets have agonized for some time about the upcoming change in monetary policy by the Federal Reserve, as it moves to the next phase of the cycle with an interest rate cut.
  • With a 25bps cut priced in, last week saw a jump in the probability of the first cut in four years being 50bps cut.
  • The Yen briefly traded through 140 against the dollar this morning as the BOJ comments on rate rises help to extend the currency’s rally to the strongest level in over a year.   
  • With the exception of Bank Indonesia (whose next meeting is the day before the Federal Reserve), the other major Central Bank meetings are don’t start until next month.
  • The Central Bank’s in the region in this cycle have done a good job of strengthening their currencies, whilst accumulating reserves and likely now are in the fortuitous position of waiting for the FED before making the decisions necessary for their respective currencies at later stages this year.