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Currency Market Analysis

Jul 17, 2018 | Currency Market Analysis

Global Themes

USD slips as Powell testimony looms; SG exports miss

The USD was lower overnight as markets looked ahead to key statements from the Australian and US central banks.

The USDSGD fell from near one-week highs despite a stronger result from US retail sales.

US retail sales in June increased by 0.5% while the previous month’s result was revised higher by a whopping 1.3%.

Trade weakens

In early trade, the SGD was weaker in most other markets after a weaker than expected reading from local trade figures.

June non-oil exports fell 10.8% versus expectations for an 8.0% fall. Annual numbers also missed expectations.

The EURSGD neared two-month highs, but the JPYSGD dropped to near five-month lows.

Policy talk

The focus over the next 24 hours will be major statements from the Reserve Bank of Australia and US Federal Reserve chair Jerome Powell.

Today, the RBA minutes are due at 9.30am with the more cautious tone from the RBA recently weighing on the AUD. The AUDGSD recently fell from one-month highs,

Tonight, Fed chair Jerome Powell presents his semi-annual statement to the US Congress.

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