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Currency Market Analysis

Sep 25, 2020 | Currency Market Analysis

Global Themes

USDCNH slips from two-week highs as Dow selling pauses

The USDCNH hit two-week highs yesterday as equity markets across Asia extended the recent selling but a late rally on Wall Street cases the USDCNH to ease lower.

US stocks were helped by a recovery in technology companies with the Nasdaq index up 0.6% overnight.

However, analysts remain concerned that the recent markets volaitlty might continue ahead of the US presidential election on 3 November.

The USDCNH ended 0.2% higher.

Euro rebound

The euro rebounded from two-month lows.

The Japanese yen fell from two-month highs.

The AUD continued to weaken as markets focused on the potential for further action from the Reserve Bank of Australia.

Confidence counts

US data was mixed overnight with a weaker result from the employment market but new home sales jumping to the best level in 14 years.

Tonight, US consumer confidence is due.

More importantly, markets will be looking US shares tonight, with any selling potentially supporting the US dollar.


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