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Currency Market Analysis

Jun 14, 2017 | Currency Market Analysis

Global Themes

USDSGD at eight-month lows ahead of Fed meeting

The USDSGD returned to near eight-month lows on the back of market caution towards US dollar.

Further political difficulties from Washington DC, with attorney-general Jeff Sessions testifying to Congress, continued to weigh on the US dollar.

Also, markets seem calm ahead of a well-telegraphed Federal Reserve interest rate hike due tomorrow morning at 2.00am.

The USDSGD was 0.2% lower overnight as it neared the lowest levels since early October 2016.

The euro was slightly lower as it dropped 0.1% as German confidence fell.

The GBP jumped sharply from two-month lows after UK inflation came in stronger than expected.

Big night

We have a number of key releases due over the next 24 hours.

Today, Chinese data, including industrial production and retail sales, are due at 10.00am.

Tonight, US inflation will be released at 8.30pm.

Of course, the major announcement is from the Federal Reserve, due at 2.00am.

The market expects the Fed to hike US interest rates to 1.25% but the statement, forecasts and press conference will be critical.

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