EM Asia FX Higher

 The dollar's softer tone on Tuesday seems to be mainly due
to position adjustment among market participants, he added.     
    May will say Britain will not seek a Brexit deal that leaves
it "half in, half out" of the European Union, according to her
office, in a speech setting out her 12 priorities for upcoming
divorce talks with the bloc. 
    Those priorities will include leaving the EU's single market
and regaining full control of Britain's borders, several
newspapers have reported, reinforcing investor fears of a "Hard
Brexit" which have pummelled the pound.
    Investors are also looking to speeches by U.S. Federal
Reserve officials this week and Republican Donald Trump's
inauguration as U.S. President on Jan. 20, for near-term
catalysts on the dollar and Asian currencies.
    Stephen Innes, senior trader for FX broker OANDA in
Singapore, said the dollar's broadly weaker tone on Tuesday was
probably driven by position adjustments.
    "If you look at this long dollar trade, which is still on
the books, it hasn't been cleared out," Innes said.
    Asian currencies have risen broadly so far in January, with
some of those gains coming after a news conference by Trump last
week offered little clarity on his fiscal policies and
disappointed dollar bulls.

REUTERS 

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

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes