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Currency Market Analysis

Aug 23, 2017 | Currency Market Analysis

Global Themes

Euro gains in focus as Draghi speech looms

The US dollar was stronger overnight as US markets turned more positive on hopes the Trump administration would soon launch its tax reform package.

The news sent US stock markets strongly higher. The US dollar gained as a result.

Previously, the greenback saw strong gains immediately after President Trump's election victory on hopes tax cuts and infrastructure spending would boost economic demand and inflation.

The USDSGD was up 0.1%.

Majors lower

While the USD gained, most other currencies were weaker versus the SGD

The euro fell 0.3% while the British pound dropped 0.5%.

The Japanese yen dropped 0.4%.

Draghi speaks

Today’s focus remains on the euro with a major speech from European Central Bank president Mario Draghi.

Draghi is due to speak to the Lindau conference at 3.00pm and in a further speech on Saturday morning at the Fed’s Jackson Hole conference. Markets are prepared for the ECB to end its money-printing program in a move that could see the euro stronger.

Also tonight, PMI (purchasing managers index), which measures global growth expectations, will be important.


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