Dollar down as Trump takes over, most Asia markets up

Trump’s inauguration speech Friday continued his campaign rhetoric, saying “every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families”

AFP, HONG KONG: The dollar retreated against most of its peers yesterday, with warnings of wild volatility ahead as Donald Trump began his presidency promising to put America first and hitting out at global trade deals.
While trading floors are ravaged by uncertainty over the tycoon’s plans, shares in most Asian markets rose following a positive lead from Wall Street, though Japan’s Nikkei tanked as the greenback slipped against the yen.
Trump’s inauguration speech Friday continued his campaign rhetoric, saying “every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families”.
On Sunday he vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada.
“Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation,” Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, told Bloomberg News.
“Shares remain vulnerable to a further correction or consolidation in the next month or so.”
But the dollar—which soared in November and December on expectation Trump’s big-spending, tax-cutting, deregulation plans would fan inflation—continued to struggle in January.
In afternoon trade Monday it bought 113.40 yen, well down from 114.60 yen Friday and more than four percent down from the highs touched late in December. It was also well down against the euro and pound despite ongoing concerns about Britain’s exit from the European Union.
‘Volatile times’ 
“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at OANDA, said in a note.
“There remains a high level of uncertainty about the new administration’s dollar policies, especially following President Trump’s recent remarks on the strong dollar directed at China.”
Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.

Dollar down as Trump takes over, most Asia markets up

Trumps inauguration speech Friday continued his campaign rhetoric, saying “every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families”

AFP, HONG KONG: The dollar retreated against most of its peers yesterday, with warnings of wild volatility ahead as Donald Trump began his presidency promising to put America first and hitting out at global trade deals. While trading floors are ravaged by uncertainty over the tycoons plans, shares in most Asian markets rose following a positive lead from Wall Street, though Japans Nikkei tanked as the greenback slipped against the yen. Trumps inauguration speech Friday continued his campaign rhetoric, saying every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and Americanfamilies. On Sunday he vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada. Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation, Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, told Bloomberg News. Shares remain vulnerable to a further correction or consolidation in the next month or so. But the dollarwhich soared in November and December on expectation Trumps big-spending, tax-cutting, deregulation plans would fan inflationcontinued to struggle in January. In afternoon trade Monday it bought 113.40 yen, well down from 114.60 yen Friday and more than four percent down from the highs touched late in December. It was also well down against the euro and pound despite ongoing concerns about Britains exit from the European Union. Volatile times I suspect were entering extremely volatile times for the dollar, Stephen Innes, senior trader at OANDA, said in a note. There remains a high level of uncertainty about the new administrations dollar policies, especially following President Trumps recent remarks on the strong dollar directed at China. Trump last week said the greenback was too strong against Chinas yuan and claimed this was killing the US economy.