Currency Market Analysis

Feb 22, 2018 | Currency Market Analysis

Global Themes

USD jumps, equities hit Fed optimism

An optimistic reading of the US economy from the US Federal Reserve saw markets pressured again overnight with bond yields higher and stockmarkets lower.

The USD jumped higher.

The US Federal Reserve minutes, released this morning, saw only a small change in wording, but an upgrade in its economic forecasts, and a statement that the Fed will require “further” gradual tightening, stoked fears of more US rate hikes.

Euro, Aussie lower

The USDSGD was 0.3% higher as it reached one-week highs.

The euro was lower overnight as it was pressured by the stronger US dollar. The EURSGD fell 0.4%.

The AUD also continued to fall as it dropped 0.6%.

The Japanese yen was broadly flat.

Fed in focus

The US Fed will remain front-and centre today with key speeches from board members William Dudley and Raphael Bostic.

The euro will also be in focus over the next few days with the minutes from the European Central Bank’s last meeting due tonight and eurozone inflation due tomorrow night.

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.