Equities move higher

Friday’s positive mood on Wall Street continued in morning trade in Asia, with US indices gaining between 0.49% and 0.59%. The outperformer of the day was the HonkKong33 index, which rallied 1.8% after the ongoing weekend anti-government protests, now in its 11th week, passed off peacefully for the first time in a number of weeks.

Currencies were a little more lacklustre, with no discernible risk-on trading evident. EUR/USD was up 0.02% by lunchtime while AUD/USD slid 0.05%. GBP/USD looks set for its third daily gain in a row, the first time since early-July, after posting the first weekly gains in five weeks last week.


GBP/USD Weekly Chart

Source: OANDA fxTrade


Thailand’s growth slows in Q2

In what is likely to be a recurring theme in Asia, the Thai economy slowed to +0.6% q/q in the second quarter, down from +1.0% in Q1 and below economists’ estimates of a 0.7% expansion. No doubt the Us-China trade frictions and a slowing Chinese economy contributed to the slower growth and this theme is likely to repeat across most Asia export-focused economies.

The slower second quarter numbers led the Planning Agency to lower its 2019 GDP growth forecast to 2.7%-3.2% from 3.3%-3.8% while slicing exports growth to -1.2% from +2.2%.

The Thai baht has been the best-performing Asian currency against the US dollar this year, rising more than 5% since the start of the year. Those gains have caused some concerns and complaints from the tourism sector and the authorities scaled down tourism receipts for this year to 2.04 trillion baht from 2.21 trillion baht. USD/THB is now at 30.865, just above last month’s low of 30.510, which was the lowest since June 2013. The Agency sees USD/THB in a 30.7-31.7 range.

USD/THB Weekly Chart

Source: OANDA fxTrade


Better Malaysia growth forecast

In contrast to the rest of the region, ratings agency Fitch upgraded its 2019 growth forecast for Malaysia to 4.6% from 4.2% at a prior estimate, stating that is sees imports and investment increasing while exports are likely to be a drag in the second half of this year.


Jackson Hole looms

It’s a slow start to the week on the data front, with most eyes already on the Fed’s Jackson Hole Symposium which starts on Thursday. Today we only have Euro-zone current account data for June and Euro-zone consumer prices for July. CPI is seen falling 0.4% m/m, which would be the lowest reading in six months, and could give the ECB some encouragement in its easing considerations.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD turns below 1.10 as market mood eases

EUR/USD has dropped below 1.10 as the market mood improves. Earlier, it hit three-week highs as the stock market crash and rush into bonds is raising the chances of the US Fed cutting rates. Further coronavirus headlines are awaited.


GBP/USD hits new 2020 low amid Brexit rhetoric, coronavirus headlines

GBP/USD has dipped below 1.2850, hitting a new 2020 low as concerns about a no-trade-deal Brexit are weighing on the pound. Coronavirus-linked USD weakness is minimal in this pair.


XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors