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Currency Market Analysis

Dec 19, 2017 | Currency Market Analysis

Global Themes

USDSGD falls as US tax plan drives greenback nerves

The US dollar remained volatile overnight as markets continue to look ahead to the key US tax bill that could be passed as soon as this week.

The nervousness around the bill saw the US dollar weaken overnight.

The USDSGD fell 0.1%.

Majors higher

The US weakness saw the other key markets stronger.

The euro climbed 0.2% versus the SGD while the Japanese yen was 0.1% higher.

The New Zealand dollar fell after a drop in NZ consumer sentiment was seen as extending a recent run of poor data following September’s general election.

The South African rand surged over the last two days after African National Party deputy Cyril Ramaphosa became the new South African president.

Housing markets

Today’s focus is on the Reserve Bank of Australia minutes due at 8.30am. The RBA is likely to maintain its current view that local rates are on hold.

However, after a recent run of weaker data, with inflation, wages and GDP below expectations, the RBA could strike a more cautious note.

Tonight, the major news comes form the US housing market. This series has recently beaten expectations.

Building permits and housing starts are both due at 9.30pm.

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