Currency Market Analysis

Jun 26, 2018 | Currency Market Analysis

Global Themes

USD climbs as trade tensions mount; Dow at two-month lows

The US dollar gained further overnight as ongoing trade tensions hit major global markets.

The trade nerves saw the US’s Dow Jones index down 1.3% overnight with other major markets also lower. The UK’s FTSE 100 fell 2.2% while the German DAX dropped 2.5%.

A sharp drop in commodity prices also hurt markets with copper, a key benchmark of global growth expectations, nearing six-month lows.

New highs

The USDSGD jumped 0.3% yesterday to end at the highest level since 8 November 2017.

The euro continued to outperform as the European single currency extended its gains since the European Central Bank’s decision to announce an end date for its stimulus program.

The Japanese yen was also higher as markets looked to “safe haven” assets like the Japanese yen.

US data

Today’s key data comes from the US with consumer confidence due at 10.00pm.

Federal Reserve board member Raphael Bostic also speaks tonight.

Later this week, US durable goods on Wednesday night and US GDP on Thursday will be big US announcements.

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