With participants on the long weekend, liquidity in the FX markets remains low. Hence volatile news flow continues to drive pricing. In reaction to signs that the US-North Korea summit would move forward Asian currency gained across the board. In unpreceded language North Korean leader, Kim Jong Un stated he was committed to 'complete' denuclearization on the Korean Peninsula. In addition, Kim said he would end the history of war and bring prosperity. The sound bit was enough to send risk appetite higher despite Kims checker past with commitments. Elsewhere in Asian, Indonesian IDR rallied from a weak position as the Central bank called an additional Board Meeting 30th May. We now anticipate the central bank will make a pre-emptive strike by hiking policy rate further 25bps at this meeting to highlight commitment to currency stability.
By Peter Rosenstreich
