23 Oct 2013
Prospect of continuing Fed liquidity provides SE Asia support
FXstreet.com (Barcelona) - Heading into the Asian session, the miss in the NFP numbers and the subsequent expectations of continuing Fed support should prove supportive for risk and for those SE Asia currencies particularly exposed to QE liquidity conditions.
Non-farm payrolls added just 148,000 workers last month, below consensus expectations of 180,00 and signalling a loss of momentum in the US recovery.
While the unemployment rate dropped 0.1 percent to 7.2 percent, the lowest rate since November 2008, the below-expected headline number should push any expectation of a tapering of the Fed’s monthly asset purchase programme into the first quarter of 2014.
Prospect on continuing easy money from the Fed will help support currencies such as the Malaysian Ringgit and Indonesian Rupiah, with BOP imbalances making them particularly exposed to any relative tightening of US monetary conditions.
IDR and MYR both rallied on the NFP miss, and could be set for further gains through the Asian session.
Non-farm payrolls added just 148,000 workers last month, below consensus expectations of 180,00 and signalling a loss of momentum in the US recovery.
While the unemployment rate dropped 0.1 percent to 7.2 percent, the lowest rate since November 2008, the below-expected headline number should push any expectation of a tapering of the Fed’s monthly asset purchase programme into the first quarter of 2014.
Prospect on continuing easy money from the Fed will help support currencies such as the Malaysian Ringgit and Indonesian Rupiah, with BOP imbalances making them particularly exposed to any relative tightening of US monetary conditions.
IDR and MYR both rallied on the NFP miss, and could be set for further gains through the Asian session.