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Currency Market Analysis

Jun 20, 2017 | Currency Market Analysis

Global Themes

Greenback stages comeback as Fed looks to more hikes

The US dollar was stronger overnight as commentary from the US Federal Reserve suggested further rate hikes were on their way.

The major technical level at these highs again caused the market to reverse sharply lower.

Overnight, Fed board member Will am Dudley said that pausing the Fed's recent run of rate hikes would "endanger" the US economy. The Fed has lifted rates three times in the last six months.

Mostly higher

In other markets, key currencies were lower.

The weakest were lower yielding currencies like the euro and Japanese yen.

However, the SGD has been stronger against the Japanese yen.

The British pound also fell after another terror attack in London.

Central banks

Locally, the major release comes from Australia with the minutes of the Reserve Bank of Australia meeting due at 11.30am.

Also, the central bank bandwagon continues tonight, with major commentary from the Swiss National Bank, Bank of England and Fed.

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