BoJ remains under pressure to ease policy, achieving inflation goal likely to become even more elusive: ANZ Research
Australian bonds slump as positive U.S. data aid markets, easing trade tensions provide modest support
EM Asian currencies likely to rally further during rest of September, remain susceptible to Fed’s monetary policy stance: Scotiabank
Vital Signs. Business investment is flatlining, and it isn't clear that suasion or a special allowance will help
Australian ANZ-Roy Morgan consumer confidence falls 1 pct last week, inflation expectations remain stable
Australia’s demand for mortgages picks up sharply in response to rate cuts in June and July, RBA unlikely to be impressed
USD/CNY seen to decline towards 7.0 as US-China Washington talks likely to achieve a breakthrough, says Scotiabank
USD/KRW likely to rally through 1,200 along with USD/CNH breaking above 7.0 if US-China trade talks break down at Osaka Summit, says Scotiabank
The USD/KRW currency pair is expected to rally through 1,200 along with USD/CNH breaking above 7.0 if the US-China trade talks break down at the Osaka Summit or later, according to the latest research report from Scotiabank.
BoK Governor Lee Ju-yeol said on Wednesday morning that the central bank will closely monitor external uncertainties including US-China trade tensions and the semiconductor cycle, pledging to "take appropriate measures to accommodate changes in economic conditions."
South Korea's exports fell 16.6 percent y/y in the first 10 days of June, largely due to decreased shipments of semiconductors. Central bank chief Lee had ruled out the possibility of a rate cut in the past few months, with the belief that the South Korean economy will gather pace during the second half of the year.
"In our view, Governor Lee’s remarks suggest a drastic shift from his previous commitment to standing pat. The BoK will follow suit on August 30 if the Fed decides to lower the target range for the federal funds rate by 25 bp to 2.00-2.25 percent at the July 30-31 FOMC meeting that has been fully priced in Fed Funds Futures," the report further commented.
If the BoK stays on hold in August, it will likely cut its policy rate by 25 bp on October 17 after the Fed ends its balance sheet runoff in September. Similarly, Indonesia’s Finance Minister Sri Mulyani Indrawati told reporters in Jakarta on Wednesday that the BI may adjust its monetary policy stance due to latest global development, joining other central banks to counter a global economic slowdown.
Meanwhile, geopolitical situation on the Korean Peninsula remains stable with emerging possibility of a third Trump-Kim Summit, Scotiabank added in its note.