Forex Signals – Asian currencies on recovery

BENGALURU (Reuters) – Long positions across most Asian currencies were comfortably raised, a Reuters poll found, as investors turn increasingly optimistic of the region’s economic rebound with confidence in the U.S. dollar waning and China primed for a recovery.

Live Forex Signals

Though fragile, recent economic data from China, the world’s second-largest economy, has pointed to a nascent recovery. Long bets on both South Korea’s won and the Malaysian ringgit climbed to more than two-year highs.

Despite many Asian economies suffering double-digit contractions in the last quarter due to lockdown measures, many investors say the worst is probably over.

Telegram Signals

“The recovery is now being seen as something more sustainable, which is driving inflows back into Asia and supporting Asian currencies against the dollar,” said Wei Liang Chang, a macro strategist at DBS.

Long positions on the Philippine peso , the region’s top performer so far this year, were also sharply raised to their highest since early 2013.

Forex Signals Margin and Leverage

One currency that investors have remained bearish about is Indonesia’s rupiah , an interest rate carry trade favourite, on expectations of further monetary easing this year.

Forex Signals – Dollar on backfoot

While rates were kept on hold on Wednesday after the vast majority of poll responses came in, analysts are still factoring in further cuts this year over other fiscal and monetary measures.

Creating a Trading Plan

Learn Online Forex Trading

“Markets are concerned about the fiscal burden sharing with BI (Bank Indonesia), possible fiscal slippage, as well as the diminished yield attractiveness of the rupiah,” DBS’ Chang said.

Forex Signals – The U.S. dollar was down

Forex Signals – US Dollar Up After COVID-19 Recovery

The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars.

Forex Signals – Thai Baht is Asia’s Top

The figures include positions held through non-deliverable forwards (NDFs).

Join our 21,345  Subscribers Forex Signal Packages!!

Forex Signals – Asian currencies on recovery