The Trump Hedge

Stephen Innes, senior trader at OANDA, wrote:

With risk heebie-jebbies setting in, the USDJPY finds itself straddling the 104 level in early APAC trade, a very critical sentiment level. Markets are scrambling for election hedge, JPY “ Vols” are getting paid up, so  downside USDJPY remains very much exposed.

On the Bank of Japan front, there was little new from the central bank’s  policy statement, but much discussion continues to revolve around their yield curve control policy. In itself, the plan appears to be ineffective at depressing the Yen as the markets view the September policy shift as effectively tapering.

 

BARRON’S ASIA

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)