Recent reports indicate that investors have significantly increased their long positions in Asian currencies, including the Chinese yuan and Philippine peso. This growth in confidence is driven by easing tensions in U.S.-China trade relations and the stability seen in fresh trade deals.

Renewed Interest in Yuan

Long positions on the Chinese yuan reached their highest levels since October 2023, indicating robust optimism. The yuan has appreciated by 1% this month, reflecting the positive sentiment and expectations around tariff reductions.

Alongside the yuan, both the Taiwanese dollar and Philippine peso are seeing net long positions rising to their highest since late 2020.

Impact of Tariff Ruling on Market Sentiment

This surge in investor interest comes as the U.S. Court ruling against Trump’s tariffs alleviated some market fears. The dollar has seen a sell-off, promoting more favorable conditions for Asian currencies.

For traders, it is vital to monitor trade policy developments and upcoming economic events that may influence currency valuations.