Article Highlights

  • Japan all industries activity up by 0.3% vs. 0.4% expected, 0.0% previous
  • Dollar drops on Trump’s “America First” tone
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It was a bloodbath for the dollar today, as Asian session traders priced in their jitters over Trump’s “America First” policies.

Major Events:

Broad USD weakness – With not a lot of data on the docket, Asian session forex traders decided to price in Trump’s inauguration and his speeches over the weekend.

Unfortunately, they mostly echoed his campaign promises of withdrawing from the Trans-Pacific Partnership (TPP) as well as re-negotiating the North American Free Trade Agreement (NAFTA). Not good for Uncle Sam, whose trade activities will likely suffer from uncertainty over the next couple of months.

The Greenback lost pips against its major counterparts while safe-haven bets such as gold, Treasuries, and the yen gained ground. Australia’s A SX 200 is also down by 0.77% and Nikkei dropped by 1.32%. Meanwhile, more action from the Chinese government kept the Chinese markets afloat with Hang Seng only dipping by 0.08% and the Shanghai index popping up by 0.27%.

Major Market Movers:

USD – The dollar fell across the board on uncertainty over Trump’s trade policies.

EUR/USD shot up by 42 pips (+0.39%) to 1.0744, USD/JPY fell below 114.00 to trade at 113.62, GBP/USD rose by 52 pips (+0.42%) to 1.2428, and USD/CHF dropped by 27 pips (-0.27%) to .9989.

The comdolls also clocked in gains against the Greenback with AUD/USD shooting up by 15 pips (+0.20%) to .7571, USD/CAD slipping by 34 pips (-0.26%) to 1.3287, and NZD/USD rising by 33 pips (+0.46%) to .7204.

Watch Out For:

  • 12:00 pm GMT: German Bundesbank report

See also:

Last Week’s Top Forex Movers

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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