Greenback trades soft in APAC

Most Asian markets turned lower Friday following a healthy run-up in the week, tracking a sell-off on Wall Street where a plunge in retail giant Macy’s fanned concerns about the key US retail sector.

Optimism has been high the past four days on solid US jobs data and moderate Emmanuel Macron’s landslide French presidential win Sunday, pushing some markets to multi-year highs.

But traders took a step back ahead of the weekend with confidence rattled by a series of below-par Chinese data and Donald Trump’s shock firing of the head of the FBI, which some fear could lead to a crisis that will knock the president’s economy-boosting agenda offline.

On Thursday New York’s three main indexes turned negative after Macy’s announced a 39 percent fall in net profit, its latest in a series of weak readings that have have underscored the deterioration of bricks-and-mortar stores due to the rise of e-commerce.

The dollar turned lower against its major peers, having enjoyed a surge Thursday on comments from a top Federal Reserve official backing three more interest rates this year.

The unit “is weighed down by the Trump/Comey sideshow which has seen the greenback move lower against” major currencies, Stephen Innes, a senior trader at forex firm OANDA, said in a commentary.

And on oil markets both main contracts pressed on with their recovery from last week’s sharp losses, with investors cheering a bigger-than-expected drop in US inventories and signs an OPEC output cut was kicking in.

AFP

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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