Currency Market Analysis

Jul 03, 2018 | Currency Market Analysis

Global Themes

USDSGD at one-year highs as trade tensions bite

The US dollar strength returned overnight as trade tensions grew on reports the US was considering leaving the World Trade Organization.

The news saw safe haven markets outperform with the US dollar strongly higher.

Heavy weather

The USDSGD climbed 0.5% as it hit the highest level since July 2017.

The euro was stronger as European unemployment fell to the lowest level since the GFC.

The Swiss franc and Japanese yen also gained.

RBA cut more likely

Today’s focus is on the Reserve Bank of Australia decision.

The RBA will be closely watched as recent commentary has suggested the central bank has turned more cautious on the Australia economy.

Bond market pricing has seen the market suggest a rate cut is now more likely for the balance of 2018.

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