The Greenback Slides in Asia

“The global reaction [to Trump’s travel ban] has been one of universal condemnation,” said Stephen Innes, a currency senior trader at Oanda Asia Pacific.

“The fear here is that the market may start to think that personal vendetta is clouding the Oval Office judgment and they could express a huge vote of non-confidence through the markets,” he said.

“The increase in civil unrest alone should be a concern for investors, and with a lack of clarity on the economic policy front, markets will be cantankerous early in the week as they’re completely uncertain of what’s next from President Trump on the geopolitical landscape,” he added.

Also unsettling the market was the gross domestic product (GDP) data, which showed US economic growth slowed more than expected to 1.9 per cent in the October-to-December period, down from 3.5 per cent in the third quarter.

Nonetheless, Innes said the dollar should regain solid ground quickly, as Trump’s immigration stance is “not economically disruptive to the scale where it will dampen Wall Street’s current momentum”.

Financial markets in Hong Kong, mainland China, Singapore, and Malaysia were closed Monday for the Lunar New Year holidays.

Hong Kong markets will resume trading on Tuesday, while mainland markets will open on Friday.

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
Stephen Innes

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