Currency Market Analysis

Mar 16, 2018 | Currency Market Analysis

Global Themes

USD jumps as equities, commodities drop on Fed fears

Ongoing global tensions continue to pressure markets with the US’s S&P 500 and Nasdaq indexes both dropping for the fourth-consecutive day. The US’s Dow Jones index climbed.

Key commodities were also lower – with oil, gold and copping all falling – on reports US special counsel Robert Mueller had issued a subpoena for documents related to US President Donald Trump’s business operations.

A run of better US data, including stronger manufacturing figures, also supported the greenback.

Aussie hit

The USDSGD climbed from the one-month lows seen earlier in the week.

The euro fell while the Japanese yen climbed.

The AUD was weaker versus in all major markets with the AUDSGD nearing three-month lows.

The New Zealand dollar was weaker after a poor result from NZ GDP. In annual terms, NZ economic growth was reported at 2.9% versus 3.1% expected.

EU CPI due tonight

Eurozone inflation numbers will be critical tonight.

A weaker number could provide a pressure the EUR and provide an opportunity for euro buyers.

Next week, the US Federal Reserve meets, as does the Reserve Bank of New Zealand, while Australian employment figures for February are released.

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