Asian Stocks Trade Mixed AS USD Wobbles Despite Trump Comments
- Asian stocks were mixed
- The Nikkei 225 slipped as the US Dollar did likewise
- Japanese consumer prices came in as expected, still far from the Bank of Japan’s 2% target
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The US Dollar wobbled a little once more on Friday despite US President Donald Trump’s remarks in Davos.
The President said that he wished ‘ultimately’ to see the currency stronger- as a reflection of confidence in the US economy. Initially his words were seen as dialing back those of Treasury Secretary Mnuchin this week. Mnuchin seemed to be relaxed about currency weakness. However, Trump’s use of the word ‘ultimately’ clearly suggested that current Dollar weakness may not be of great concern to the White House, and the currency slipped again through the Asian session.
Asian stock markets were mixed. The Nikkei 225 fell by 0.2% having relinquished modest early gains. Data released Friday showed that Japanese consumer prices were steady in December, with core prices up by 0.95- in line with expectations. Australian markets were closed for the Australia Day break, but stocks in China and South Korea posted small gains, the latter made an all-time record high on Thursday.
Still to come in the remainder of global Friday are official Gross Domestic Product data from the US and UK, the European Central Bank’s survey of professional forecasters, Canada’s Consumer Price Index and the US advance good-trade balance. US durable goods orders are coming too, and Bank of England Governor Mark Carney will speak at the World Economic Forum in Davos.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.