Bearish bets on Chinese yuan sharply unwind on trade optimism – Reuters poll

According to the latest Reuters poll of 15 respondents, investors turned bullish on most Asian currencies over the past two weeks amid easing US-China tensions after the US President Trump said that US-China trade talks will restart.

Key Findings:

“Bearish bets on the Chinese yuan being sharply unwound.

Short positions in currencies of export-focused economies were also shaved, with sentiment towards the Korean won, the Taiwan dollar and the Singapore dollar improving the most.

Bulls seized hold of the Indonesian rupiah for the first time since early August.

Bullish positions on the Thai baht retreated to their lowest since early June amid rising bets of a rate cut as early as September, after inflation missed expectations in August.

Short positions on the Indian rupee largely remained unchanged.”