Asia FX: Tech-driven risk-off weighs before NFP – MUFG
FXStreet · FXStreet Insights Team ·
MUFG analysts Khang Sek Lee and Lin Li note that the recent tech-led equity selloff has undermined Asia FX, offsetting support from lower Oil prices and US yields. Safe-haven demand has lifted the Dollar and Japanese Yen, while upcoming US Nonfarm Payrolls data could reinforce expectations of further Fed tightening, adding pressure on Asia FX, particularly tech-sensitive currencies like TWD and KRW.
MUFG analysts Khang Sek Lee and Lin Li note that the recent tech-led equity selloff has undermined Asia FX, offsetting support from lower Oil prices and US yields. Safe-haven demand has lifted the Dollar and Japanese Yen, while upcoming US Nonfarm Payrolls data could reinforce expectations of further Fed tightening, adding pressure on Asia FX, particularly tech-sensitive currencies like TWD and KRW.
Risk sentiment pressures regional currencies
"For Asia FX, the sharp deterioration in risk sentiment threatens to outweigh the relief from lower oil prices and US yields in Asia’s trading session today, especially for tech-sensitive currencies such as TWD and KRW."
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