Currency Market Analysis
Jan 24, 2022 | Currency Market Analysis
Greenback lower as US shares tumble
The US was weaker in Asia on Friday night as an ongoing sell-off in US shares continued to weigh on the world’s most-traded currency.
Global sharemarkets have been pressured as markets worry about the impact of potential rate hikes from the US Federal Reserve.
The Dow Jones fell 1.3% while the technology-focused Nasdaq dropped 2.8%.
Risk-sensitive FX hit
The USDSGD fell 0.3%.
The euro and Japanese yen were higher as markets favoured safe-haven assets like German and Japanese government bonds.
On the other hand, risk-sensitive FX, like the Australian dollar, were sharply lower, as was the British pound.
The main focus this week is on the US Federal Reserve meeting on Thursday morning.
The Fed is expected to end its money-printing program and signal it will begin to raise rates at it 17 March meeting.
Otherwise, US GDP and personal consumption numbers will also be keenly watched.
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