Currency Market Analysis

Nov 08, 2017 | Currency Market Analysis

Global Themes

USD continues higher as markets look to Fed

The greenback continued to gain overnight as the US dollar index closed near four-month highs.

The market widely expects the US Federal Reserve to raise rates when it next meets on 14 December.

The USDSGD was up 0.2%.

Big losses

The Australian dollar fell further yesterday after the Reserve Bank of Australia remained firmly neutral at their monthly interest rate decision.

A recent slowdown in key local data – including retail sales and inflation – has seen markets push back expectations for any Australian rate hike.

The AUDSGD dropped 0.5% as it fell to the lowest level since July.

The euro was also weaker as the EURUSD dropped below a key technical level.

The EURSGD fell 0.1% and traded to the lowest level since July.

Chinese data

All eyes are on China this week with major data coming from the world’s second-largest economy.

Chinese trade balance is due today with consumer inflation due on Thursday.

Around the region, tomorrow’s Reserve Bank of New Zealand decision will be closely watched.

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