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Currency Market Analysis

Jun 07, 2018 | Currency Market Analysis

Global Themes

USDSGD hits one-month lows as markets look to Europe

The USD was weaker overnight as markets continued to shift their attention to the potential for an end to the European Central Bank’s stimulus program.

The USDSGD fell 0.2%.

Euro gains

The euro was stronger overnight after a more optimistic statement from the European Central Bank.

The ECB signalled it would consider ending stimulus at its 14 June meeting. The ECB's chief economist Peter Praet said, “Next week, the (ECB's) Governing Council will have to assess whether progress so far has been sufficient to warrant a gradual unwinding of our net purchases.”

The Australian dollar returned to its recent highs yesterday after a much stronger-than-expected reading from March-quarter economic growth.

First-quarter GDP came in at 3.1% in annual terms – well above expectations of 2.8%.

US jobs power

The Australian trade balance for May can drive early activity with the market looking for a trade surplus of around AUD1 billion after last month’s better than expected result.

From Europe, March quarter GDP numbers will be critical as the EUR’s recent resurgence continues.

From the US, the JOLTS job opening reading will be closely watched as jobs growth continues to significantly outperform.

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