EM Asia : Asean investors grow cautious

   March 23 Most Asian currencies fell against the
dollar on Thursday as investors waited to see if U.S. President
Donald Trump could push through a health bill to replace
"Obamacare", which would open the way for tax cuts.
    Trump was to meet later in the day with members of the
Freedom Caucus, a conservative Republican faction which have
demand changes to the bill, which is Trump's first major
legislation since taking office.
    Fierce opposition could delay promised tax reforms, which
have boosted U.S. financial markets.
    "It is the risk sentiment which is driving the markets right
now" said Andy Ji, a currency strategist at Commonwealth Bank of
Australia.

The South Korean dollar continued its surge to
lead Asian currencies' gains against the dollar this year.
    However, markets were also keeping a close eye at the
JPY/KRW pair, which was hovering near a 15-month low,
underlining the won's strength against the yen.
    With worries about Trump's healthcare bill are expected to
remain the focus of markets in coming days, some analysts said
the Federal Reserve's monetary stance will still decide Asian
currencies' movements in the long term.
    "Don’t let this wave of risk-off muddy the big picture,"
said Stephen Innes, senior trader at OANDA.

Reuters


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.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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