Become a client

Currency Market Analysis

Jan 17, 2018 | Currency Market Analysis

Global Themes

USD weakens further as Dow, bitcoin see sharp reversals

The recent burst of enthusiasm that sent markets higher over the last six weeks turned sharply overnight with recent market leaders like the US’s Dow Jones index and cryptocurrency bitcoin suffering marked reversals overnight.

Bitcoin fell 15% yesterday – while other cryptocurrencies fell even more – on worries about a South Korean crackdown on cryptocurrency exchanges.

Importantly, US equities, which have gained almost 10% from early December, also turned sharply, down 1.2% from the overnight highs.

Greenback hit

The USD was caught up in the overnight selling as the USDSGD fell 0.1%.

Other FX markets, however were higher.

The EUR gained 0.1% while the JPY was up 0.2%.

The Australian and New Zealand dollars were both weaker in line with losses in equity markets.

Oh Canada

All eyes will be on the Bank of Canada tonight.

The Canadian central bank is expected to raise interest rates by 25 basis points to 1.25%.

Tonight’s decision, especially if accompanied by a more confident-sounding statement, could see the Canadian dollar gain.

Also today, European inflation, due at 6.00pm, will be important.

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.