Global Themes

Pound nears one-year lows as Brexit deal falters

The British pound tumbled as the overnight reaction from UK parliamentarians suggested the critical Brexit bill is unlikely to be successful. This leaves to the UK open to a calamitous “no deal” Brexit.

The GBPSGD neared the lowest level since August 2017.

USD slips despite retail sales

The USDSGD fell back to one-week lows overnight as global share markets pressed higher with the very strong US retail sales number having little impact on the US dollar.

Instead, the good news on the US economy boosted markets around the world with investors instead favouring more risk-sensitive currencies like the Singapore dollar.

The AUDSGD jumped higher yesterday after a stronger than expected reading from the Australian jobs market.

In October, the Australia jobs market grew by 33k new jobs, well above the 20k expected. The unemployment rate remained at a five-year low of 5.0%.

Brexit woe

The focus remains on Europe overnight with progress around the UK’s Brexit deal likely to be closely watched.

In Europe, a speech from ECB president Mario Draghi, and updated inflation results, will be the key events.

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