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Currency Market Analysis

Feb 08, 2018 | Currency Market Analysis

Global Themes

Greenback extends gains as US reaches budget deal

The US dollar was stronger across markets overnight after the US government reached a two-year spending deal. The US dollar gained.

The USDSGD climbed 0.5%.

The USDSGD is now up 1.4% over the last five trading days.

Fears grow

The SGD was down sharply in most other markets.

In other markets, the JPYSGD saw the largest gains up 0.5%.

The JPY is closely correlated with market sentiment and the overnight move higher could signal greater risk for global sharemarkets.

New Zealand dollar fell sharply after the Reserve Bank of New Zealand kept rates on hold and downgraded inflation forecasts.

Bank of England

Today, the key focus will be on Chinese trade balance due at 10.00am.

Later, Reserve Bank of Australia governor Philip Lowe speaks at 5.00pm.

Tonight, the Bank of England meets as it tries to weigh the twin demand of higher inflation and Brexit worries.

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