Busy APAC markets

The dollar sank on news that two additional Republican senators had opposed the Republican health-care bill. There are now four GOP senators who have voiced opposition to the bill, which is likely enough to stop it dead in its tracks: The GOP holds 52 seats in the Senate.

The dollar index, which measures the dollar against a basket of currencies, traded at 94.800 at 9:52 a.m. HK/SIN. Against the yen, the greenback fetched 112.22 yen, off levels around the 113 handle seen the last two weeks.

Meanwhile, the euro gained against the dollar to trade at $1.1530.

Investors were now more doubtful over the future of U.S. tax reforms, given the difficulty the health-care bill has faced in making progress, OANDA senior trader Stephen Innes told CNBC. The health-care bill being passed would have added money in the coffers for the government to enact subsequent tax reforms, Innes added.

“The market has a tendency to overreact, but it looks like another nail in the coffin (for the bill),” Innes said.

CNBC

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

Latest posts by Stephen Innes (see all)