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Currency Market Analysis

Aug 28, 2017 | Currency Market Analysis

Global Themes

USD at 11-month lows as Jackson Hole hits greenback, lifts euro

The USDSGD fell to 11-month lows after the weekend’s speeches from key central banks.

The Federal Reserve’s Jackson Hole Symposium was the big driver of FX markets.

Fed chair Janet Yellen’s Jackson Hole speech steered away from monetary policy but unsettled markets by taking a clear contrary position to President Trump on financial regulation.

With Yellen’s term as Fed chair set to expire in February 2018, the speech was seen as a potential rebuff towards any offer of a job extension.

Euro jumps

The USDSGD fell 0.5% as it approached the lowest levels since 22 September 2016.

The euro jumped higher as European Central Bank president Mario Draghi didn’t provide any detail about a potential exit from the ECB’s stimulus program but sounded optimistic about the European economy and didn’t sound concerned about the higher euro.

Th euro hit the highest level in two years versus the Singapore dollar.

The British pound and Japanese yen were both weaker.

US data

US data will be key for the week ahead.

We have the private sector ADP jobs reading and second-quarter economic growth due on Wednesday. The all-important official reading of non-farm payrolls is due on Friday.

Chinese manufacturing is due on Friday.


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