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Currency Market Analysis

Aug 17, 2017 | Currency Market Analysis

Global Themes

Fed caution sends greenback lower

The USD was weaker overnight as the US Federal Reserve minutes signalled a more cautious approach from the US central bank.

While US growth numbers have recently been strong, a slowdown in inflation – a key driver of the Fed’s decision making process – is increasingly causing the Federal Reserve to worry about the long-term direction for the US economy.

Last night, Fed members indicated they have growing concerns about whether further rate hikes would be necessary if inflation stayed below the Fed’s 2.0% target.

The US dollar fell sharply as a result.

Exports lower

The USDSGD fell 0.3%

However, the SGD was weaker in early trade after a lower than expected local export result.

Annual export volumes grew by 8.5% versus expectations of 9.9%.

The SGD’s weakness saw the euro, British pound and Japanese yen higher in early trade.

Aussie jobs

Today’s focus is on Australian jobs numbers due at 9.30am.

The market is looking for a positive result with the local job series recently positing a consistent run of better than expected numbers.

Tonight, European inflation and US manufacturing numbers will be released


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