Currency Market Analysis

Nov 10, 2017 | Currency Market Analysis

Global Themes

Tax plan uncertainty hits markets; USD weaker

Financial markets fell lower overnight in the most significant session of selling in over two months as President Donald Trump’s tax plan saw two competing pieces of legislation enter the US Congress.

While the focus has been on the House of Representatives, a new proposal from the US Senate, which would see corporate tax cuts delayed until 2019, caused markets to weaken.

US shares, as measured by the Dow Jones index, fell as much as 1.0% before regaining some of these losses.

Risk off

The weakness across markets saw the US dollar fall.

The USDSGD dropped 0.3%.

In other markets, the Singapore dollar was caught up in the tax-driven negativity and was lower versus all major currencies.

With the SGD weaker, the EURSGD climbed 0.2% while the GBPSGD was up 0.1%.

Retail sales in focus

Today’s major announcement comes from the local retail sales.

The most recent retail sales numbers, released for August, saw a 0.3% fall.

Singapore retail sales are due at 1.00pm.

Next week, Chinese industrial production, and inflation from the US and Eurozone, will be the key releases.

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