by SignalFactory · November 16, 2021 | 11:58:13 UTC
Most emerging Asian currencies rose on Tuesday as traders were encouraged by positive developments in talks between Chinese Premier Xi Jinping and U.S. President Joe Biden, with the South Korean, won hovering at its strongest level in two weeks.
Jinping and Biden opened talks warmly and stressed their responsibility to avoid conflict. They are expected to discuss a range of issues including tariffs on China imposed by former U.S. President Donald Trump.
Against this backdrop, China’s yuan hit its highest in more than five months. The Thai baht and the Singapore dollar firmed 0.1% each, while the South Korean won rose as much as 0.3%.
Asian investors trod a cautious path Tuesday, with surging inflation the key point of concern on trading floors, while eyes were also on a virtual summit between Joe Biden and Xi Jinping as they plot their way through a period of tension between the superpowers.
Global markets have enjoyed about 18 months of healthy gains — with many hitting record or multi-year highs — thanks to ultra-loose central bank monetary policies put in place at the start of the pandemic.
But with the recovery well on track and people returning to a semblance of normality, inflation is surging to levels not seen in decades owing to a spike in demand and supply chain snarls — forcing policymakers to turn off the taps.
Now there is a growing concern that officials — particularly at the Federal Reserve — will have to withdraw their massive support measures faster than hoped, while some observers have warned they could be leaving it too late, and risking prices running out of control.
Among them are former New York Fed president Bill Dudley, who told Bloomberg TV the central bank was “going to have to get the taper done quicker”, though he added that moving too fast could spook investors and cause a “taper tantrum”.
The concern was also being felt across the Atlantic, where Bank of England chief Andrew Bailey said he was “very uneasy about the inflation situation”.
Still, for now, investors remain optimistic that officials are on the right track, with Wall Street’s three main indexes as well as markets in Europe sitting at or just below all-time highs.
Tuesday’s release of data on October retail sales will be closely followed for an idea about the impact of inflation on consumer appetite.
In early trade, Hong Kong led gains with tech firms building on a recent advance as concerns about China’s recent crackdown on the sector ease, while the crisis at developer China Evergrande has also moved into the background.
Traders are awaiting news on the talks between Biden and Xi, which saw the two sides looking for better communications with relations rocked by a series of crises including on Taiwan, human rights, and trade.
USD/SGD Long (Buy) Enter At: 1.35615 T.P_1: 1.36440 T.P_2: 1.37187 S.L: 1.34949
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.