In an environment that is seeing less monetary policy divergence (China tightening vs Fed’s non-commitment), Trump’s recent controversial executive orders, rising yields, equities, the signs are less clear. Our 30-day rolling

GBL: Awaiting the USD Bulls

FX Asia Fortnightly by Saktiandi Supaat

FX Research

In an environment that is seeing less monetary policy divergence (China tightening vs Fed’s non-commitment), Trump’s recent controversial executive orders, rising yields, equities, the signs are less clear. Our 30-day rolling correlation study reveal that in this recent period of USD retreat, traditional risk asset correlation have weakened. Asia currencies are also less reactive to UST, equities and brent. However, that could easily change should the USD bulls awaken...