Yuan in Trump Watch Mode

It is expected that Trump’s first news conference since his election win will provide more clues and details on his policy preferences after he takes office on January 20.

“Today the market is in ‘Trump-watch mode’,” said Stephen Innes, senior trader at Oanda. “He may shed some light on his trade protectionist stance.”

The two traditional trade protectionism proxies are the Chinese yuan and the Mexican Peso, both of which stand to suffer if the Trump’s campaign’s anti-globalisation rhetoric becomes policy, added Innes.

“Regarding the Chinese yuan, traders will also be on guard for currency manipulation comments,” he added. “Overall, I see a sooner-rather-than-later test of the 7 level to the dollar, which could occur after the Lunar New Year break, when interbank dealers will likely stoke their depreciation engines.”

South China Morning Post

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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