Asia Currency Lower as risk appetite wanes

 Asian currencies slipped on Tuesday
against a firmer dollar as political uncertainty in Britain and
the eurozone bogged down their respective currencies - shifting
focus to the greenback.
    Sterling slipped after a poll showed British Prime
Minister Theresa May's lead over the opposition Labour Party in
upcoming elections dropped to 6 percentage points. 
    The euro fell on concerns over a bailout for
Greece, as eurozone finance ministers failed to agree with the
International Monetary Fund last week on Greek debt relief.

    "A few polls in the UK highlighted what the market thought
would be a soft Brexit turned out to be a hard Brexit," said
Stephen Innes, a senior trader for currency broker OANDA. "This
risk environment is weighing negatively on global sentiment."
   The dollar index moved up 0.33 percent as at 0632 GMT
against a basket of currencies.
 
    SINGAPORE DOLLAR
    The Singapore dollar was down about 0.12 percent
against the dollar, extending its losses from Monday to fall to
its lowest in nearly a week. 
     "There's a bigger relation with the RMB complex," said
OANDA's Innes. 
   "Since the PBOC has been guiding the stronger fixes since
last week, coupled with a ridiculous carry that has been imposed
 on the short CNH positions, the Singapore dollar is
piggybacking movements on the underlying RMB."
       
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

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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