A bump in the road for the EURO ?

Weaker narrative –

But Draghi did voice concern over the “volatility” in currency markets. He spoke after the ECB left its bond-buying stimulus for the eurozone in place.

Stephen Innes, head of Asia-Pacific trading at OANDA, tipped the greenback to continue falling owing to Trump’s desire to help US manufacturers and exporters as part of his America First policy.

“It’s obvious to anyone that the US administration trade policy would benefit from the weaker dollar policy, but I suspect Trump’s latest … comments are more about optics and little more than a case of temporarily taming the dollar bear ahead of his Davos speech” on Friday, he said.

“The weaker dollar narrative remains intact for 2018.”

While the yen edged back up, it was still off the levels below 109 against the dollar seen in Asia on Thursday, and that game some support to the Nikkei, which ended the morning session 0.2 percent higher.

Hong Kong rose 0.8 percent after sinking almost one percent on profit-taking, while Shanghai and Seoul each added 0.1 percent. Jakarta and Kuala Lumpur also rose while Singapore was flat but Wellington, Taipei and Manila retreated.

AFP

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