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Currency Market Analysis

Oct 15, 2021 | Currency Market Analysis

Global Themes

USD pressured as shares, commodities gain

A positive night in financial markets saw global sharemarkets and commodities both jump higher.

Investor sentiment has improved this week as markets seem less concerned about the detail of the US Federal Reserve’s plans to slowing reduce the pace of its bond-buying program.

Meanwhile, a strong start to the US’s third-quarter reporting season also helped shares.

The US’s Dow Jones index gained 1.6% with the benchmark market now back near all-time highs.

Commodities were also stronger with copper up 2.0% overnight. The metal, often seen as a leading indicator of global activity, is only 5.0% away from all-time highs.

USDSGD weaker

The USDSGD fell 0.2%.

The rise in commodities boosted the Australian dollar and the AUDSGD jumped 0.5% as it neared key three-month highs.

The euro continued to fall, with the EURSGD down 0.2%, while the JPYSGD fell 0.6%.

US retail sales

Later, US retail sales will be closely watched after a recent run of better US data also provide support to markets.

Last night, weekly unemployment claims fell to the lowest level since the start of the pandemic, while producer prices were just below expectations.

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