Asian equities could trade on the backfoot amid a hawkish chatter from Fed speakers yesterday on Wall Streets. As correlation with US assets gets stronger after a hawkish repricing, bonds and equities in Asia could trade under pressure due to the rise of the risk premia. The USD is back trading higher due to the increase in the global yield differentials and technical positions unwinding as the greenback was being heavily shorted.
On the geopolitical front, some headwinds could hit Chinese firms as it was reported that the G7 is considering sanctions on China firms and firms from Iran and North Korea that are supplying Russia with technology for military purposes. On the macro front, the calendar is light, and therefore, it wouldn’t provide any major change as traders are keeping a close eye on policymakers’ remarks to position accordingly ahead of key upcoming inflation figures and job market data ahead of next month’s rate decision.
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© 2019 High Leverage FX - All Rights Reserved.