Currency Market Analysis

Jun 22, 2017 | Currency Market Analysis

Global Themes

US dollar eases gains as shares, commodities fall

A steep sell-off in US shares and commodity markets pressured the US dollar with a sharp drop in crude oil prices spooking markets

Other key commodities were also lower with gold and silver weaker.

The market nerves caused markets to worry the US Federal Reserve might to need to raise rates again this year. The USDSGD was steady after climbing 1.4% over the last week.

Weaker through markets

The biggest move overnight was in the British pound.

The British pound was stronger after Bank of England chief economist Andy Haldane publicly disagreed with BoE governor Mark Carney. Haldane said the recent spike in UK inflation might require higher interest rates.

The New Zealand dollar was also stronger after the Reserve Bank of New Zealand indicated it was more optimistic on the NZ economy. However, the RBNZ said it has no current plans to raise interest rates.

The Australian dollar fell from two-month highs as commodity prices fell.

Central bank chatter

Tonight’s economic data comes from Europe and the US.

In the US, weekly unemployment claims are due at 8.30pm while in Europe, consumer confidence is due at 10.00pm).

The central bank chatter continues with the Fed’s Jerome Powell and the BoE’s Andrea Maechler both speaking overnight.

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