Currency Market Analysis

May 11, 2017 | Currency Market Analysis

Global Themes

USD hits three-week highs; Aussie, kiwi smashed

The US dollar helped higher after a big jump in oil prices boosted sentiment toward US stocks. The greenback was higher as a result.

The USDSGD continued its recent run to the topside as it traded to three-week highs.

The pair is now up 1.6% in just over a week as markets look ahead to a likely Federal Reserve rate hike on 15 June.

Aussie, kiwi lower

In other markets, the focus was on the euro as European Central Bank president Mario Draghi made a major speech.

Draghi indicated he was more confident in wages growth in a sign that the ECB might soon begin to wind back its stimulus program.

The Australian and New Zealand dollar were lower after the Reserve Bank of New Zealand said it has no plans to raise interest rates the near future.

Markets had recently speculated that better data would drive the RBNZ to raise rates sooner rather than later. However, the RBNZ has refuted this view.

The NZDSGD fell to nine-month lows.

Bank of England

Looking ahead, EU economic forecasts are due which will provide more detail on expectations for European growth.

The Bank of England also meets tonight with the British pound recently stronger.

From the US, we have producer prices and unemployment claims.

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