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Currency Market Analysis

May 23, 2018 | Currency Market Analysis

Global Themes

USD stronger ahead of Fed minutes

The USDSGD climbed from one-week lows overnight ahead of major commentary from the US Federal Reserve.

The Fed minutes are expected to provide further information as market look ahead to a likely US rate hike on 14 June.

The current market pricing, according the Reuters, signals a 97% chance of a US rate hike next month.

Down from highs

The euro remained pressured after a shocking month-long fall following April’s European Central Bank meeting. The EURSGD fell 0.2%.

The GBPSGD climbed from five-month lows as the Bank of England inflation report, released overnight, boosted the British pound.

The AUDSGD fell from one-month highs to end the session down 0.1%.

RBA speech

Tonight’s Reserve Bank of Australia speech will be closely watched.

RBA governor Philip Lowe speaks to the Australia-China Relations Institute with the market looking for further information about the bank’s view on inflation, wages and the housing market.

A more negative passement could pressure the AUD.

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