The shock continues to buoy the albeit to a lesser degree, but for today’s dollar demand we can chalk that up to a general risk malaise triggered by the EU council malfunction and a failed clinical trial of a high-profile anti-virus drug
Still, risk sentiment is holding up relatively well despite incredibly weak global PMI data over the past 24 hours that came in well below expectations in several cases. Suggesting that the USD could give way into the weekend
The combination of persistently low yields and rallying equities suggests investors expect central banks to remain in money printing mode as investors remain positioned fearless with central banks unhurried about shrinking balance sheets. If that expectation is correct, US credit spreads should tighten further, and stocks rally into the weekend.
Provided global inflation expectation remains muted, ASEAN bond markets have scope for further gain. The high yielders like the IDR and INR are well-positioned and with the BNM…