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Currency Market Analysis

Nov 14, 2017 | Currency Market Analysis

Global Themes

Greenback climbs as rising US rates dominate markets

The greenback climbed again overnight as rising US interest rate continue to dominate markets.

US two-year bond yields have jumped from 1.25% on 8 September to 1.69% overnight. This is a significant move and saw the USDGSD up more than 2.0% over the same period.

The rally in US interest rates has been driven by an expectation the US Federal Reserve will raise rates in December and could hike a further three times in 2018.

Pound sunk

The USDSGD climbed 0.2% overnight.

The SGD was mixed versus most other major currencies.

The EURSGD climbed 0.1% while the JPYSGD also climbed 0.1%.

The GBPSGD fell 0.4% as worries about the future of UK PM Theresa May hit the British pound.

Chinese data

From overseas, Chinese production data and retail sales numbers will be the key release.

The Chinese data is due at 10.00am.

Tomorrow, US inflation numbers, due Wednesday night, will drive markets. 

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