Kevin Hassett Says Inflation Is Below Target, Backs Trump’s Call for Rate Cuts 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Oil Prices Steady in Asia but Headed for Weekly Loss on Supply Glut Concerns 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
EM Asian currencies are expected to suffer further from U.S. President-elect Donald Trump’s policies and the prospect of ECB QE tapering. The Fed remains on track for a rate rise in December after U.S. November NFP data released last Friday missed market estimate slightly only.
Donald Trump has pledged to spend USD 1 trillion in fiscal stimulus and sticks to his protectionist views laid out during his campaign. Steven Mnuchin, U.S. Treasury secretary nominee, said last Wednesday that ultra-long bond sales would be considered. It spurred market worries and sent long-term UST yields higher.
Last Thursday, U.S. President-elect Donald Trump called NAFTA a total and complete disaster in his first major address since winning the 2016 election when visiting the Carrier plant.
Escalating U.S. inflation expectations stemming from Donald Trump’s pro-growth stance, i.e. Trumpflation risks, have sparked massive capital outflows from the region and weakened regional currencies. Trans Pacific Partnership (TPP) will be withdrawn by Trump, while NAFTA is supposedly getting a rewrite. It is anticipated to undermine some regional currencies of export-oriented economies.
"In addition, the prospect of ECB QE tapering will be negative to EM Asian currencies in our view, as what happened in early October when the possibility was reported by Bloomberg for the first time," Scotiabank commented in its latest research report.
