Nikkei Lower on Stronger Yen

In the currency market, the dollar pulled back against a basket of currencies to trade at 101.26, after falling to 100.64 in the Monday session. That was down from levels near 102.00 in the previous week.

The slip in the dollar saw other major currencies trade higher; the Australian dollar was at $0.7488, up from levels below $0.7400 last week and buoyed by higher metal prices. The euro was at $1.0609, climbing from below $1.055, while the pound traded at $1.2400.

The Chinese yuan also strengthened to 6.8916 against the dollar, after hovering near 6.9200 last week.

Treasurys also rose in the U.S. on Monday, with the two-year note yield dropping to 1.107 percent, while the benchmark 10-year yield traded lower at 2.314 percent.

The pull-back across asset classes could suggest market watchers’ enthusiasm for the Trump administration was waning.

Stephen Innes, a senior trader at OANDA, said in a note that traders were not rushing back to “reinstate long dollar just yet” and were waiting for noteworthy U.S. fiscal stimulus clues from the new Trump administration, while hedging fall-out risk from the upcoming Italian referendum.



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