Unwinding of the Trump long-dollar trade extended through Asian session on Monday and the greenback traded with bearish bias across the board. The markets were disappointed by lack of details on Trump's expansionary fiscal policies at his inaugural speech on Friday.
The Japanese Yen got an additional boost from prevalent risk-off mood, while upbeat sentiment in commodity space was seen lending support to the Antipodeans.
In absence of any major market moving releases, market movement remains at the mercy of US Dollar price-dynamics, which could remain weak until some clarity emerged on Trump’s promised fiscal stimulus measures.
Main topics in Asia
Saudi – Oil supply cut by 1.5 million barrels per day
The countries have already cut oil supply by 1.5 million barrels a day, more than 80% off their collective target, said Saudi Arabia’s Energy Minister Khalid Al-Falih.
Asian stocks are on the back foot on Trump’s protectionist agenda
Major Asian indices dropped along with the US dollar as fears about Trump’s protectionist policies forced investors to move out of risky assets and into safe havens - gold, Yen, treasuries.
Key focus for the day ahead
GBP: Technical indicators suggest another attempt higher is likely - BBH
Analysts at BBH note that owing largely it seems to the issues surrounding Brexit, sterling marched to a different beat in the previous week.
EUR/USD extends gains, will it end the three-month losing streak?
EUR/USD extended gains to fresh session high of 1.0750 as the unwinding of the Trump trade gathered pace.
Theresa May to unveil new industrial strategy
UK PM Theresa May will publish a paper today that shall detail how business will be spread throughout the country.
US: Markets have priced in most of the positives and not enough of the negatives - Rabobank
Analysts at Rabobank note that Trump’s plans to increase spending on infrastructure, reduce tax rates, slash regulation, and liberalize the energy sector should boost the US economy in the coming years.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.