Currency Market Analysis

Feb 15, 2018 | Currency Market Analysis

Global Themes

USD tumbles despite CPI jump

The USDSGD experienced a roller-coater session overnight with the market higher after a strong US inflation result before the US dollar later weakened.

The core measure of US inflation – which removes more volatile

components like food and energy – came in at 0.35% (or 1.8% in annual terms). This the highest reading since 2005.

The news initially saw the US dollar jump sharply higher but a strong move in US sharemarkets later boosted the currencies like the SGD and saw the USD weaken.

SGD weakness in other markets

The USDSGD fell 0.7%.

However, the SGD was weaker in most other markets.

The EUR climbed 0.3% while the GBP was up 0.2%.

The JPY climbed 0.2%.

Aussie jobs

Today, all eyes will be on the Australian dollar after a weaker employment report.

Tonight, US producer prices and industrial production will be closely watched.

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