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


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes