Become a client

Currency Market Analysis

Oct 11, 2017 | Currency Market Analysis

Global Themes

USD’s rally reverses as Fed, inflation loom

The USDSGD dropped to two-week lows the US dollar paused its recent run.

The US dollar has gained almost 4.0% since the US Federal Reserve announced last month that it plans to raise rates one more time in 2017. The Fed also expects to raise rates three times in 2018.

The USDSGD fell 0.5%.

Mostly lower

The euro continued to gain as markets look ahead to a potential end to the European Central Bank’s money-printing.

The ECB’s program is expected to end in December.

The euro climbed 0.1%

In other markets, the Swiss franc and British pound were both weaker, while the Japanese yen dropped sharply.

Fed, inflation key

Markets will be looking to US news over the next few days with tonight’s US Federal Reserve minutes of particular importance.

The US dollar’s gains have driven by expectations of further rate hikes so the Fed’s thinking will be critical. The minutes are due at 2.00am.

On Friday, US inflation and retail sales can also drive the US dollar. Stronger numbers could see the USD stage a comeback.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.