Currency Market Analysis

Aug 03, 2017 | Currency Market Analysis

Global Themes

Euro bursts to two-year highs as market look to stimulus end

The euro continued to climb sharply as the European currency hit new two-and-a-half highs versus the US dollar.

A recent run of better data has boosted the EUR as market look ahead to an end of the European Central Bank’s stimulus program.

The EURSGD climbed 0.6% as it hit the best levels since October 2015.

USD higher

The USDSGD climbed higher overnight as it continued to rebound from ten-month lows.

The New Zealand dollar the big story yesterday after quarterly NZ employment figures saw a 0.2% decline versus expectations of a 0.5% rise. The news saw markets push back expectations for a rate hike from the Reserve Bank of New Zealand.

The Australian dollar held steady at one-week lows overnight as markets paused following Tuesday’s Reserve Bank of Australia warning about the recent AUD strength.

Major releases due

Tonight’s focus is on the UK.

The so-called “Super Thursday” will see the release of the Bank of England’s Inflation Report, their rate decision and a speech from BoE governor Mark Carney.

Key service sector activity measures from China and Europe will also be watched.

Tomorrow night, the US non-farm payrolls – the month’s most important US release – might move markets.

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