Currency Market Analysis

Nov 03, 2017 | Currency Market Analysis

Global Themes

USD eases as Powell wins Fed chair; US jobs tonight

The US dollar was weaker overnight after US President Donald Trump announced Jerome Powell would be the new Federal Reserve chair.

Powell, with a long history in Republican politics and finance, is seen as a Washington insider that will maintain current policy settings. Powell was a long-term ally of current Fed chair Janet Yellen.

The appointment was a small negative for the US dollar with other candidates seen as more likely to raise US interest rates at a quicker pace.

Powell starts his four-year term in February.

One-week lows

The USDGSD slipped for the second consecutive session as it hit one-week lows.

The USDSGD was down 0.2%.

The SGD was mixed in other markets with gains versus the euro and Swiss franc higher and the Japanese yen weaker.

The biggest losses were seen in the British pound after the Bank of England raised rates

overnight. The BoE’s hike was seen as a one-off and the pound fell after the decision.

The GBP fell to two-month lows.

The Australian dollar was stronger after a strong result from yesterday’s trade balance numbers also boosted the AUD. .

Jobs, retail

The US dollar could see further volatility tonight with US non-farm payrolls due at 8.30pm.

The market has the highest forecast in recent history for tonight’s release with expectations at 310k. US jobs had a very poor result last month due the impact of this year’s US hurricanes.

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