Long USD bets continued to be unwound on disappointment over the lack of details on the planned e

GBL: Range-Bound Trades Ahead

FX Asia Fortnightly by Saktiandi Supaat

FX Research

Long USD bets continued to be unwound on disappointment over the lack of details on the planned expansionary programme or tax cuts in Trump’s inaugural speech. Still, we expect this pullback in the USD to be temporary as US growth, acceleration in inflation, rate hikes by the Fed should support the USD higher. The correction in the USD is not a bad thing and has benefited Asian currencies, especially the JPY and the SGD. For now, USD/Asians should continue to trade range-bound in the two ...