Currency Market Analysis

Oct 17, 2017 | Currency Market Analysis

Global Themes

USDSGD higher as Taylor talk for Fed boosts greenback

The US dollar was stronger overnight as markets looked ahead to the next potential chair of the US Federal Reserve.

The US dollar was stronger after Stanford economist John Taylor was reportedly considered in a strong position to take over the role of Fed chair. Current chair Janet Yellen’s term ends in February 2018.

Taylor has worked for former Republican administrations and created the “Taylor rule” for setting interest rates. A Taylor-led Fed is seen as more likely to raise US interest rates.

Mostly lower

The USDSGD climbed 0.1% as it bounced from three-week highs.

The US dollar’s gains saw most other markets lower.

The euro continued to fall to three-month lows with a 0.1% drop.

The Japanese yen, down 0.1%, and the British pound, down 0.3%, were also lower.

RBA minutes

The major release today comes from the Reserve Bank of Australia with the minutes from its 3 October meeting released at 8.30am.

The RBA continued to adopt a strictly “on hold” position and the AUD was lower.

In Europe, all eyes will be on inflation readings, with consumer price index (CPI) numbers released in both the UK and Eurozone.

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