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Currency Market Analysis

Dec 14, 2017 | Currency Market Analysis

Global Themes

USD hits two-week lows after Fed hikes, but maintains forecasts

The USDSGD fell to two-week lows this morning after the US Federal Reserve raised US interest rates but maintained current forecasts for future rate moves.

FX markets had been on edge after better US economic data, fearing the Fed could signal a shift in rate hike expectations. However, the Fed kept forecasts at three more rate hikes in 2018.

With the Fed maintaining current forecasts, the US dollar weakened immediately after the Fed move.

Aussie jumps

Most other currencies gained versus the SGD.

The EUR climbed 0.2% as it hit one-month highs while the Japanese yen jumped 0.5%.

The Australian and New Zealand dollar were both much stronger with the AUDSGD at one-month highs.

ECB, BoE meet

FX markets might see further volatility with a series of major events due over the next 24 hours.

Later, Chinese industrial production numbers, due at 10.00am, US retail sales, and central bank meetings from the UK, Eurozone and Switzerland can all drive big moves.

Placing orders is one way to take advantage of this likely volatility and potentially achieve a more attractive rate. Speak to your Western Union Business Solutions representative for more information.

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