Indecisive Markets


Asian markets started cautiously Tuesday while the euro’s recent rally was hobbled by profit-taking and below-par economic data, with focus turning to the Federal Reserve’s latest gathering this week.

While not expected to result in any shift in interest rates, the Fed meeting will be pored over by traders hoping for some clues about future hikes and its timetable for winding down its bond holdings.

The meeting is a key part of a stand-out week for US-watchers. It ends Wednesday, the same day second-quarter economic data is released, while big-name firms are at the height of their reporting season.

Thrown into the mix is the ongoing drama surrounding Donald Trump’s administration, with his son-in-law and top adviser Jared Kushner giving testimony Monday denying colluding with Russia to sway the November presidential election.

“The high level of trepidation continues to weigh on market sentiment as congressional hearing of White House advisors all but guarantees some headline risk and a possible escalation of the Russia-gate bluster,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“Risk sentiment is indecisive due to the political commotion in Washington but with so much dollar risk to roll out including (the Fed meeting and growth data) amidst a busy week for US corporate earning, investors have been reluctant participants so far this week showing a minimal appetite for markets in general.”


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