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Currency Market Analysis

Oct 12, 2017 | Currency Market Analysis

Global Themes

USD weaker as Fed minutes signal uncertainty

The USDSGD fell to two-week lows overnight as last night’s Federal Reserve minutes indicated some division from the US central bank.

The US Fed is widely expected to raise rates when in meets in late December.

However, last night’s minutes signalled some board members were wary of raising rates with inflation below the Fed’s target.

That said, Fed chair Yellen has said she believes rates need to be hiked otherwise the economy runs the risk of overheating. The market pricing for a hike remains near 80%.

Euro gains

The USDSGD fell 0.1%

The euro continued to gain as markets look to the end of the European Central Bank’s stimulus package. ECB president Mario Draghi speaks tonight.

The British pound and Swiss franc were also stronger while the Japanese yen fell.

US inflation

The euro will remain in focus ahead of the key speech from the ECB’s Mario Draghi.

Later, US producer prices will be important ahead tomorrow night’s inflation release.

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