Asia markets stressed ahead of high risk events

– Most Asian currencies edged up against the dollar on Tuesday, though the same global developments that hurt the greenback also reduced risk appetites for cautious investors.

Against the yen, the dollar was down 0.6 percent to 109.770 yen, its lowest since April 25.

Investors were worried about the Middle East and terror attacks, and were awaiting the British election, a policy meeting of the European Central Bank and congressional testimony in Washington of former FBI director James Comey – all on Thursday.

“It is a pretty stressful week for the traders as we get towards these hard points such as the ECB policy meeting, UK elections and upcoming Comey testimony” said Stephen Innes, senior trader at OANDA.

“People are getting a little bit nervous about not only holding but generally the global landscape now.”

Despite a drop in oil prices, the Malaysian ringgit registered a rise for the third consecutive day. Some analysts said the escalating tensions in the Middle East could benefit Malaysia’s LNG exports.

Business Standard

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