Pound and Yuan Start the Week on a Negative

The dollar strengthened and the pound extended its decline from Friday, while the offshore yuan had its biggest two-day drop since June. European shares were mixed and U.S. equity futures pointed higher following gains in most Asian markets.

The Dollar Index edged higher after U.S. jobs data for December bolstered the case for the Federal Reserve to raise borrowing costs this year. The yuan extended its decline following the biggest loss in a year, while the worst performing major currency was the won, which dropped the most in two months. U.K. shares continued to climb, while German and broader European equities fell. Hong Kong stocks traded near a one-month high and Singapore equities rallied to the highest since November 2015. Markets in Japan were closed for a holiday.

Bloomberg

APAC Session: Mayday sends GBP lower in Asia

Earnings Surprise Sees Dollar Tick Higher

MS

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.