Air of caution reigns in APAC trade

Asian traders headed into the weekend on a nervous note Friday as a pick-up in US stocks and positive data were offset by worries about a crisis engulfing Donald Trump’s presidency that could throw his economic agenda into doubt.

Markets in the region were rocked Thursday by claims by recently fired FBI boss James Comey that the president pressed him to drop a probe into ex-national security advisor Michael Flynn’s links to Moscow.

That came a day after it was reported Trump had divulged classified information to Russia’s foreign minister, fanning further allegations about his own ties to the country’s leaders.

The reports compounded a crisis at the White House that has led for calls for the tycoon to be impeached, fanning fears that his plans for tax cuts and ramped up infrastructure spending could be knocked off course.

 

The dollar also managed to claw back some losses, having tumbled to seven-month euro lows but while analysts said Trump’s troubles were unlikely to throw the Federal Reserve off its course of raising interest rates next month the unit would continue to face headwinds.

“The US remains completely engulfed in the Trump Comey storyline, and the (dollar) will continue to be unalluring until further clarity is forthcoming on the special investigation,” Stephen Innes, senior trader at OANDA, said.

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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