Currency Market Analysis

Jul 27, 2017 | Currency Market Analysis

Global Themes

USD tumbles as Fed strikes cautious note

The USDSGD fell to new 10-month lows overnight after the US Federal Reserve signalled it was growing more concerned about the slowing pace of inflation.

More broadly, the Fed sounded positive, with economic growth and the jobs market both looking strong.

However, with the US dollar recently weakening, the market used the Fed statement as a reason to add pressure to the greenback.

The USDSGD fell 0.4%.

Commodity boom

Most other currencies were stronger versus the SGD as the greenback weakness boosted these currencies.

The euro hit new two-year highs, up 0.3%, while the British pound climbed 0.2%.

A better reading from commodities saw the Australian dollar up 0.4% as it neared five-month highs while the New Zealand dollar jumped 1.0% as it also hit five-month highs.

US data

Looking forward, the focus remains on the US.

Tonight, durable goods orders provides an up-to-date reading of business confidence, while US GDP, due Friday night, is seen as one of the week’s major economic releases.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.