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Currency Market Analysis

Jan 18, 2018 | Currency Market Analysis

Global Themes

Greenback stages comeback as EUR, JPY fall

The US dollar finally staged a comeback overnight as strong corporate earnings and better US data boosted hopes for the global economy.

The US dollar has recently underperformed as investors look toward more economically sensitive markets

The greenback jumped after very positive results from US industrial production (up 0.9%), capacity utilisation (at 77.9%) and an upbeat reading from the US Fed’s Beige Book survey.

EUR, JPY turn

The euro and Japanese yen both weakened as the US dollar climbed.

The Canadian dollar fell despite the Bank of Canada’s move to raise rates by 25 basis points to 1.25%.

Australian jobs, Chinese data

Australian dollar dropped this morning after the Australian rate climbed from 5.4% to 5.5%.

From overseas, a series of major Chinese result are due around 6.00pm, with December quarter economic growth figures and retail sales number likely to dominate the headlines.

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