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Currency Market Analysis

Jun 13, 2017 | Currency Market Analysis

Global Themes

USD benefits as US tech stocks drop

The USD was higher overnight as investors favoured “safe havens” as tech stock fell.

Markets have turned nervous after US technology stocks saw their biggest two-day drop since the UK's Brexit vote.

The US's technology-focused Nasdaq 100 index is up more than 30% over the last year but a sharp drop over the last two days has sparked fears of deeper falls.

Mayday for pound

In international markets, focus remained on the UK election.

The weaker British pound saw the GBP fall to two-month lows as the UK Conservative Party looked to form government after losing its majority in last week's election.

The GBPSGD was down 0.5%.

The Japanese yen climbed in line with the fall in USDJPY. The JPYSGD was up 0.5%.

Today's releases include Australia business confidence at 9.30am and UK CPI due at 4.30pm.

More broadly, markets will be looking towards Thursday morning's Federal Reserve decision.

The Fed is expected to raise rates by 25 basis points to 1.25%.

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