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Currency Market Analysis

Jun 19, 2018 | Currency Market Analysis

Global Themes

USDSGD hits six-month highs as trade wars escalate

The USDSGD hit the highest levels since 12 December 2017 this morning as fears of a growing trade war hit global sharemarkets.

The Japanese Nikkei fell 0.8%, the German DAX lost 1.4% while the US’s Dow Jones fell 0.4% overnight.

The SGD was pressured by this negative sentiment.


This morning, news the US administration would increase tariffs on up to USD200 billion worth of Chinese imports followed retaliatory moves from China yesterday.

The news sent the SGD further lower in early Asian trade.

The SGD’s largest losses were against safe haven currencies like the Japanese yen and Swiss franc.

RBA minutes

Today’s focus is on the RBA minutes at 9.30am.

Last week’s speech from RBA governor Philip Lowe, bemoaning the dearth of productivity and wages growth, has weighed on the Sing.

Over the next few days, the ECB forum in Sintra, Portugal will be closely watched. The Aussie’s recent losses have been partly driven by market-wide selling with higher interest rates around the world a major risk.

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