Analysts at ANZ say that while the U.S.-China trade relationship remains a wild card, on a relative basis, they expect most Asian currencies to outperform EUR and GBP in the near term.

• “On EUR, we expect the broad downtrend in EUR/USD to continue amid elevated geopolitical, trade and economic uncertainties. The risk of a more negative deposit rate from the ECB and a resumption of quantitative easing is growing. We expect some Asian currencies (particularly KRW and SGD) to outperform EUR in the near term.
• For GBP, Brexit uncertainty has intensified. With the next Prime Minister likely to adopt a more hard-line approach, the risk of a hard Brexit (or a no-deal Brexit) has increased. GBP/USD could trade in the 1.20-1.25 range in Q3. We continue to recommend selling rallies in GBP/Asia crosses. GBP/CNH and GBP/SGD could head lower, potentially breaking key support levels.”