Learn To Trade Forex • Best Forex Trading Course • AsiaForexMentor

Asian Markets Await Fed Chair’s Testimony Amid Mixed Signals

Written by:

Ezekiel Chew

Last updated on:

July 9, 2024

Asian currencies and stocks exhibited mixed movements on Tuesday as global markets keenly awaited testimony from Federal Reserve Chair Jerome Powell. Investors are hoping for dovish remarks that could indicate a potential interest rate cut in September, a move that would likely benefit riskier assets and regional economies.

Currency Movements

Despite a softer US dollar, several Asian currencies faced declines. The Indonesian rupiah dropped by 0.4% following four consecutive days of gains, while the Taiwanese dollar decreased by 0.2%. The Thai baht and South Korean won edged down by 0.1% and remained largely unchanged, respectively, alongside the Malaysian ringgit.

Interest rate decisions from Malaysia and South Korea are anticipated on Thursday. A Reuters poll suggests that Bank Negara Malaysia will maintain its key policy rate until at least 2026 due to expected inflation increases later this year. Similarly, the Bank of Korea is expected to hold rates but may consider easing in the next quarter.

Regional Stock Performance

Stock performances were mixed across the region. Indonesian shares rose by 0.7%, reaching their highest level since late May. Singaporean stocks gained 0.4%, nearing their record highs driven by strong performance in local bank stocks. This optimism is fueled by anticipated dividend payouts and sustained higher interest rates in both the US and Singapore, according to Lloyd Chan, senior currency analyst at MUFG Bank.

Conversely, stocks in Kuala Lumpur increased by 0.4%, while Taiwanese and Thai stocks declined by 0.3% and 0.2%, respectively.

Central Bank Policies and Inflation Reports

The Philippine central bank appears to have more room to maneuver, with Governor Eli Remolona suggesting a potential interest rate cut in August following a slowdown in annual inflation for June.

The upcoming US inflation report, due on Thursday, could further influence market expectations, currently reflecting an 80% probability of a rate cut in September, up from 64% last week.

Market participants are also closely monitoring upcoming economic data from China and Singapore. China’s inflation data is due on Wednesday, while Singapore is set to release advanced GDP estimates on Friday.

About Ezekiel Chew​

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

Maximize Your Crypto Profit: Essential Strategies for Investors

Ever dreamed of turning a small crypto investment into something much bigger? Your starting investment, no matter how modest, can grow significantly with the right strategies and careful planning. In the exciting world of digital money, many people are making real gains. But simply buying a coin and hoping for

Read More

IMF: Trade Wars Harder on Developing Nations Than COVID

Here’s a surprising thought from the world’s top financial minds: Managing the economic fallout from trade wars might be a bigger headache for central banks in developing countries than dealing with the COVID pandemic was. That’s according to Gita Gopinath, a top official at the International Monetary Fund (IMF), speaking

Read More

Income Generation with Crypto Options: Strategies for Passive Returns

Options trading in the crypto market offers a fascinating avenue for passive returns, moving beyond traditional spot trading. While it involves unique risks, understanding crypto options can unlock powerful strategies for income generation on your digital assets. Crypto options are a specific type of derivative within the broader landscape of

Read More

Asian Markets Await Fed Chair’s Testimony Amid Mixed Signals

Written by:

Updated:

July 9, 2024
Asian currencies and stocks exhibited mixed movements on Tuesday as global markets keenly awaited testimony from Federal Reserve Chair Jerome Powell. Investors are hoping for dovish remarks that could indicate a potential interest rate cut in September, a move that would likely benefit riskier assets and regional economies.

Currency Movements

Despite a softer US dollar, several Asian currencies faced declines. The Indonesian rupiah dropped by 0.4% following four consecutive days of gains, while the Taiwanese dollar decreased by 0.2%. The Thai baht and South Korean won edged down by 0.1% and remained largely unchanged, respectively, alongside the Malaysian ringgit. Interest rate decisions from Malaysia and South Korea are anticipated on Thursday. A Reuters poll suggests that Bank Negara Malaysia will maintain its key policy rate until at least 2026 due to expected inflation increases later this year. Similarly, the Bank of Korea is expected to hold rates but may consider easing in the next quarter.

Regional Stock Performance

Stock performances were mixed across the region. Indonesian shares rose by 0.7%, reaching their highest level since late May. Singaporean stocks gained 0.4%, nearing their record highs driven by strong performance in local bank stocks. This optimism is fueled by anticipated dividend payouts and sustained higher interest rates in both the US and Singapore, according to Lloyd Chan, senior currency analyst at MUFG Bank. Conversely, stocks in Kuala Lumpur increased by 0.4%, while Taiwanese and Thai stocks declined by 0.3% and 0.2%, respectively.

Central Bank Policies and Inflation Reports

The Philippine central bank appears to have more room to maneuver, with Governor Eli Remolona suggesting a potential interest rate cut in August following a slowdown in annual inflation for June. The upcoming US inflation report, due on Thursday, could further influence market expectations, currently reflecting an 80% probability of a rate cut in September, up from 64% last week. Market participants are also closely monitoring upcoming economic data from China and Singapore. China’s inflation data is due on Wednesday, while Singapore is set to release advanced GDP estimates on Friday.
ezekiel chew asiaforexmentor

About Ezekiel Chew

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

RELATED ARTICLES











I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!

I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!


I consent to receiving emails and/or text message reminders for this event.

REGISTER FOR THE MASTERCLASS!