The MUFG Asia FX Weekly report highlights the focus on upcoming FOMC minutes and regional inflation data, while noting potential shifts in Japanese FX intervention tactics and the impact of trade imbalances in Vietnam.
Key Takeaways
- 1.Macro focus shifts to FOMC minutes, Chinese inflation/credit data, and Japan's wage growth, alongside central bank policy decisions across Asia.
- 2.Potential shift in Japanese FX intervention tactics toward non-telegraphed actions is seen as a risk for USD/JPY and KRW.
- 3.Vietnam's strong Q2 GDP growth (8.39% y/y) is shadowed by a significant trade deficit, putting pressure on inflation and FX reserves.
Table of Contents
- FX views
- FX PERFORMANCE
- USD/CNY: 7-day reverse repo rate remains as the policy rate in near term
- USD/KRW: Semiconductor news dominated the Korean market
- USD/INR and USD/VND: Navigating global and local risks
- USD/MYR: Ringgit stabilizes on BNM support, election risks to watch ahead
- Week in review
- Capital Flows
- Government bond yield spreads: Decreased for 2y and 10y
- Central bank monitor
- The week ahead
- WEEKLY CALENDAR
- Forecasts
- Core indicators
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Authors
Lin Li, PhDMichael WanLloyd ChanKhang Sek Lee
Securities
USDJPYUSDKRW
Themes
Central Bank PolicyFX InterventionSemiconductor Supply Chain
Regions
Asia PacificChinaJapanSouth Korea