Asia Market update( KRW-THB-CNH) + Oil

Oil Markets

If you need further evidence of recessionary fears running rampant in energy markets do look no further than this morning WTI price action. Despite an enormous inventory draw, which typically signals a green light to buy, as even the most ardent bulls are showing meek interest to stand in front of last nights extended sell-off.

If a more substantial than expected US inventory draw can’t plug the leak, oil markets could be in for a lopsided and miserable day.

Forget Goldilocks economy; the three Oil Bears are driving the bus today!!

Asia Markets

And we thought summer was supposed to be slow but it’s certainly not looking like a beautiful day at the Beach for Asian markets (unless you’re in Thailand of course) as a multitude of concerns continue to weigh on sentiment. But throw in a stronger USD, threating to tear like a wrecking ball through Asia markets, one should position risky assets carefully this morning as the markets could move beyond this cautionary stage if this level of negatively persists. 

CNH

So many worst-case scenarios getting priced into the calculus that goes well beyond the soft-pedalling nature of the g-20 trade truce.

Clear signals that China economy is in trouble are weighing on sentiment and frankly Pboc’s Yi Gang hawkish policy retort overnight has done little to soothe investors’ concerns.

Won

The KRW NDF is bid, and the Won has been trading bid from the opening bell on the back of Korea downgrading its 2019 GDP and CPI outlooks

THB

Despite a possible interest rate cut which was thought might take some shine off the THB appeal. But the STI continuing to bounce, higher suggesting that flows remain favourable. Keep in mind that Thailand has been upping their Gold reserves, so this too is adding to the currency haven appeal as gold fever grips the Asian market yet again.