Forex Today: Trump-led USD selling extends at the start of a new trading week

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.