Pound and Yuan Start the Week on a Negative

The dollar strengthened and the pound extended its decline from Friday, while the offshore yuan had its biggest two-day drop since June. European shares were mixed and U.S. equity futures pointed higher following gains in most Asian markets.

The Dollar Index edged higher after U.S. jobs data for December bolstered the case for the Federal Reserve to raise borrowing costs this year. The yuan extended its decline following the biggest loss in a year, while the worst performing major currency was the won, which dropped the most in two months. U.K. shares continued to climb, while German and broader European equities fell. Hong Kong stocks traded near a one-month high and Singapore equities rallied to the highest since November 2015. Markets in Japan were closed for a holiday.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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