Week in FX Asia – Obama Reelection Boosts Regional Currencies

The reelection of US President Barack Obama was positive for Asian currencies as there was an inflow of dollars into the largest markets. Obama second term means that the quantitative easing policies that are currently in place will continue which have appreciated the higher growth emerging nations.

China's power transition that is to take place during the Communist Congress continues. The departing Hu Jintao has set the course for his heir apparent and has outlined the biggest challenges going forward. In a case of "He-who-shall-not-be-named" Jintao mentioned corruption and the perils the Chinese State would fall if they ignore the problem and fail to tackle it.

Japan is facing a legislation crisis if they cannot agree on the budget before the opposition parties force the Prime Minister to dissolve congress.

 

WEEK AHEAD

  • GBP Core Consumer Price Index
  • EUR ZEW Survey - Economic Sentiment
  • GBP BoE’s Governor King Speech
  • USD FOMC Minutes
  • EUR Consumer Price Index - Core
  • EUR Gross Domestic Product s.a.
  • USD Consumer Price Index Ex Food & Energy

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza