Forex Today: USD dumped amid risk-off, German IFO in focus

Risk-off trades dominated Asia at the beginning of a new week, as the Asian traders reacted negatively to Friday’s Trumpcare bill failure to seek the US House clearance, which came as a big blow to the Trump administration and raised questions on Trump’s ability to deliver on his campaign policies as well as on the Republican capacity to govern effectively. Investors sold off risky assets such as the equities and sought safety in the yen, gold and treasuries. The yen emerged the biggest gainer, while the greenback was dumped to fresh four-month troughs just ahead of 99 handle against its six main competitors.

Heading into Europe, risk-aversion remains at full steam and keeps the funding currency Euro broadly underpinned, with the German Ifo release next on tap in the European session. Also, speeches from the ECB executive board member Praet and Fed official Evans is scheduled later today amid a fairly quiet calendar.           

Main topics in Asia

Weekend highlights: GOP failings, Merkel victorious, OPEC extending supply cut accord?

After the GOP leaders postponed the vote on healthcare overhaul and delayed it to Friday, all eyes were on the event where the US House of Representatives were finally unable to agree on an alternative to the Affordable Care Act. 

USD/JPY: A big figure down in Asia risk-off as Trumpcare fails

The USD/JPY pair is meandering near fresh four-month lows, with downside opening up for a test of 200-DMA support at 109.20, as the bears remain in control amid risk-aversion at full steam.

Ex-Fed’s Lockhart: Two more hikes are reasonable

More comments flowing in from the Former Atlanta Fed Reserve (Fed) President Dennis P. Lockhart, as he crossed the wires, via Bloomberg, earlier on the day.

Gold gains altitude, nears 200-DMA

Gold is shining brightly this Monday morning as the risk-off tone in the markets is forcing investors to pour money into the safe haven yellow metal, which is trading just a shy away from the 200-DMA located at $1259.25.

Key focus for the week ahead         

GBP/USD at multi-week tops above 1.25 ahead of a Big week

The GBP/USD pair extended its bullish momentum on Monday, now flirting with fresh five-week highs reached near 1.2530 stepping into a Big week ahead.

EUR/USD keeps 2017 highs near 1.0850, IFO eyed

EUR/USD so far manages to keep the trade in the upper bound of the daily range, testing 1.0850 ahead of key German data.

UK PM May heads to Scotland to make a case for unity

UK PM Theresa May will visit Scotland on Monday to make a case for unity before her government triggers Article 50.

Trump to sign an executive order Tuesday promoting domestic oil, coal and natural gas

Bloomberg out with latest headlines on Trump, noting that the US President is set to sign an executive order this Tuesday, which is aimed at promoting domestic oil, coal and natural gas.

Week Ahead Trump Administration Fails with Healthcare Bill

The USD ended the week with a muted market reaction as the Trump administration pulled the healthcare bill as there was a lack of support from Republicans to pass the bill into law.