Watching the THB and Asian FX post-Powell
It's been an interesting week watching the fallout from Powell's more hawkish tone. Initially, I was expecting some broader USD strength across the board, but the reaction in some Asian currencies has been a bit more nuanced than I anticipated. Seeing the $THB down around 0.34% today, trading in that 34.66-35.01 range, got me thinking.
While the general sentiment is still leaning towards higher for longer in the US, I'm curious how much of this current movement in currencies like the THB is genuinely driven by the macro shift versus local dynamics or even some profit-taking after recent moves. Are others seeing similar discrepancies in other Asian pairs, or is this just noise around a generally strengthening dollar? Trying to figure out if I should be adjusting my watchlists for a more sustained run on the USD against these, or if we'll see some resilience kick in soon.
I've been noticing that as well. The divergence in Asian FX responses to USD strength signals the varying economic resilience and policy stances within the region, which is definitely worth tracking closely.