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Currency Market Analysis

Aug 10, 2017 | Currency Market Analysis

Global Themes

USD, safe havens gain as Korean tensions in focus

Yesterday, Asian markets swooned lower, with the SGD falling to three-week lows, as a series of threats were traded between the US and North Korea.

Overnight, markets stabilised. Financial markets were calmed overnight as US Secretary of State Rex Tillerson said the US administration was looking to “send a message” to North Korea and there was no immediate threat.

However, the risk of increased volatility remains.

Safe havens

The USD dollar was stronger for the fourth-day running with the USDSGD up 0.1%.

The largest gains were seen in the “safe haven” currencies like the Japanese yen and Swiss franc.

The JPYSGD climbed 0.3% while the CHFSGD was up 1.2%.

The Aussie was lower as markets sold “risk sensitive” currencies like the AUD lower.

Price pressures

Markets will be on edge today with the focus on geopolitical events.

Any increase in rhetoric could see the USD stronger.

The key economic announcements over the next 48 hours will be releases about US price pressures. Producer prices are due tonight with consumer prices due tomorrow.


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