EM Asia FX trades flat

 By Susan Mathew ( Reuters)
    June 14 Asian currencies were steady on
Wednesday as investors awaited  results of the Federal Reserve
meeting and clues on the pace of further U.S. rate hikes as well
as signals on the country's inflation outlook.
    "The FOMC is clouding the dollar sentiment so investors are
content sitting on the sidelines and not really doing much
today" said Stephen Innes, senior trader at OANDA.
    The dollar index, which tracks the greenback against
a basket of six major rivals, edged down 0.02 percent at 0541
    Conviction for a move beyond a widely expected rise now has
faded for many forecasters along with the outlook for inflation
for most, a Reuters poll showed.
    Growing doubts about the U.S. administration's ability to
pass tax and healthcare reforms through Congress, along with
weak U.S. economic data have investors expecting a more dovish
outlook, which would mean a greater gain for the Asian
currencies, analysts say.
    The U.S. May consumer price inflation data is also scheduled
to be out on Wednesday morning Washington time.
    "The CPI data could actually provide significant bounce to
the dollar. The CPI data for the last two months have come out
negative and this is what really cooled the markets' expectation
for a further rate hike beyond June" Innes said.

    Among regional currencies, the South Korean won
edged up 0.3 percent on Wednesday, recouping losses from its
previous session. 
    Meanwhile, the Taiwan and Singapore dollars
 edged lower, down 0.05 percent and 0.03 percent


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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