Asian Currencies Unmoved

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Asian Currencies Unmoved

Asian Currencies Unmoved On Monday

Most of the Asian currencies remain unmoved on Monday while the US Dollar continues to remain weak on prospects of a September rate cut.

On the other hand, the Japanese yen shows some strength after data shows an increase in average wages. Meanwhile, the EURO is back in action after the conclusion of the French election & is firm against the USD.

For the most part, the sentiment is mixed when it comes to most of the Asian currencies. According to experts, this has to do with the strained relations between the EU and China.

Regional Currencies Remain Strong

Despite the mixed sentiment, a lot of regional currencies are still in green as the Dollar continues to fall on the forecasts of rate cuts in the USA.

look at the DXY and the index futures shows that they are clocking 1-month lows, which is not so good news for the US Dollar. Now, the focus has shifted to the testimony of Fed Powell along with the release of the CPI.

Amidst all of this, the one Asian currencies which have shown excellent performance against the USD is the JPY. The JPY was already sitting at 38-year lows against the USD and has now showed some strength on the recent dollar weakness.

The USD/JPY pair is trading just below the 162.00 handle with eyes set on 161.80, 161.50, and then the 161.00 handle. New data from Japan have shown an increase in the average earnings which are growing at one of the fastest pace seen in the last 30 years.

Elsewhere, the USD/CNY pair remains unmoved on Monday but it is still sitting at 7-month highs. This is a sign that while the USD has turned weak across the board, it continues to remain strong against the CNY. One of the catalysts that is pushing the Yuan lower is the increased concerns about the economic recovery of China.

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