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Currency Market Analysis

Apr 23, 2021 | Currency Market Analysis

Global Themes

Greenback rallies as markets spooked by US tax plan

US shares fell, and the greenback gained, after US President Joe Biden announced plans to double capital gains tax for people on incomes of more than USD1 million.

The plans, widely discussed during the campaign, could have a significant impact on the timing and tax implications of share transactions.

The US’s Dow Jones fell 0.9%, the S&P 500 dropped 0.9% and the Nasdaq fell 1.2%.

Up from lows

The USDSGD jumped after earlier touching two-month lows.

The euro was weaker after the European Central Bank signalled that it was still concerned about slow growth and would maintain current stimulus plans.

The Japanese yen gained as markets remained nervous.

PMI due

Today’s focus is on purchasing manager index (PMI) numbers.

European figures are released at 4.00pm and the US report is announced at 9.45pm.

The PMI numbers are seen as the most up-to-date reading of the global economy and further good news could boost commodities.

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