Currency Market Analysis

Jun 21, 2018 | Currency Market Analysis

Global Themes

Greenback continues higher as Powell says hike case “strong”

The US dollar took another step higher overnight as the US Federal Reserve chairman Jerome Powell painted an upbeat assessment of the US economy.

At the European Central Bank’s forum in Sintra, Portugal, Powell continued to signal his confidence in the US economy, with the case for more hikes “strong”.

The greenback – as measured by the USD index – climbed to the highest level since July 2017.

Climbing

The USDSGD climbed 0.2% to reach seven-month highs.

The EURSGD inched higher as it neared key one-month highs.

The Australian and New Zealand dollar were weaker as commodity prices felt further pressure.

Bank of England

Tonight’s headlines will be driven by the Bank of England with the UK’s central bank meeting at 7.00pm.

Markets are evenly split whether the BoE will signal its intention to raise rates. If so, the GBP could gain.


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