Investors turn bearish on Asian currencies for the first time since April last year – Reuters poll

Another sign that sentiment is shifting for now

The latest Reuters poll on Asian currencies (I would argue that they can be used as a risk proxy in this instance) outlook shows that investors were bearish on all 9 currencies polled in the region for the first time in a year.

Notably, sentiment has also turned in the Chinese yuan as investors are bearish on the currency for the first time since June – highlighting some shift in the outlook towards riskier assets and the dollar in particular on prospects of a stronger US economic recovery.

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The Reuters poll uses estimates of net long or short positions on a scale of -3 to +3, with a score of +3 indicating that the market is significantly short the particular currency i.e. long US dollar instead.

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