Asia FX slips as traders weigh Trump tariff threat, Iran unrest, Fed independence

The Asian FX market has slipped as traders assess the implications of Trump's tariff threats and unrest in Iran. Trump has suggested a possible return to tariffs, affecting investor sentiment and particularly influencing the movements of the US dollar and the yen. Additionally, political turmoil in Iran has added to market unease, prompting risk-averse investors to pull back. Concerns about the independence of the U.S. Federal Reserve are also lingering, increasing market volatility. These combined factors have led to a general sell-off of Asian currencies like the yuan and yen, with a risk aversion trend accelerating among traders. As volatility remains heightened and the dollar stays comparatively strong, definitive technical signals are lacking, requiring traders to remain cautious in their strategies amidst reduced market liquidity.