Risk on but for how long

The positive data releases also gave the greenback a boost overnight. The dollar index, which tracks the greenback against a basket of six currencies, climbed as high as 92.946 overnight, compared with levels around 92.3 a day earlier. The dollar index stood at 92.893 at 9:32 a.m. HK/SIN.

Against the Japanese currency, the dollar rose to its highest levels in around two weeks. The dollar last fetched 110.40 yen after trading as high as 110.54 earlier in the session.

The dollar ceded some of its gains after the release of Japan July industrial production on Thursday. Industrial output slipped 0.8 percent, compared with the previous month, Reuters reported, slightly more than the fall of 0.5 percent forecast in a Reuters poll.

Despite largely solid economic data releases, geopolitical uncertainties continued to linger in the background, OCBC Treasury Research said in a note, citing a tweet from President Donald Trump that was critical of dialogue with North Korea. The tweet came after North Korea launched a missile that flew over Japan on Tuesday.

Still, markets have become quicker in regaining their composure following such events, said Stephen Innes, APAC head of trading at OANDA. “Risk off flows are becoming an increasingly ephemeral event,” Innes added in a note


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