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Currency Market Analysis

Dec 18, 2017 | Currency Market Analysis

Global Themes

US tax cut hope drive greenback higher; risk of further gains this week

The USDSGD climbed from key technical support at two-year lows on Friday in a sign that the recent fall in the US dollar might be nearing an end.

The US dollar staged a strong comeback on Friday after key US senators said they would support the next stage of President Trump’s tax cut package.

The tax cuts could be approved as soon as this week.

Euro hits one-month lows

Friday saw the USDSGD regain recent losses with the pair up 0.2%.

The USD continued higher in early morning trade.

With the USD higher, most key markets fell.

The euro dropped to one-month lows versus the SGD while the Japanese yen fell from one-week highs against the SGD.

US GDP risk

The last full trading week of the year will see a number of key releases with the US remaining in focus.

US GDP is due on Thursday night while personal consumption and expenditure figures, a key reading of price pressures, will be released on Friday night.

Tonight, Eurozone inflation figures are due at 6.00pm.

A stronger number could see the euro higher overnight.

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