Become a client

Currency Market Analysis

Dec 15, 2017 | Currency Market Analysis

Global Themes

USD slips to near two-year lows on tax worries

The US dollar slipped further overnight as markets turned nervous ahead of key US tax reform announcements that could be released as soon as tonight.

The greenback was weaker despite a very strong result from US retail sales.

November sales jumped 1.0% versus the 0.6% expected.

The USDSGD fell 0.1%.

Euro weakens

The euro was weaker after the European Central Bank warned overnight that inflation remains too low in the Eurozone.

The AUDSGD hit new five-week highs overnight. November jobs grew by 61.6k new jobs (41.9k full time) with the unemployment rate steady at 5.4%. The participation rate jumped from 65.1% to 65.5%.

USD slips

The US dollar was mostly weaker overnight as markets reacted to yesterday’s US Federal Reserve meeting which maintained current rate forecasts despite better recent data.

The USD will also be closely watched with President Trump’s tax package near completion. A final bill is expected tonight.

While short-term volatility is likely, in the medium term, expectations for further US rate hikes could see the USD’s strength return.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.