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Currency Market Analysis

Jul 18, 2018 | Currency Market Analysis

Global Themes

USD jumps as Fed’s Powell stays positive

The US dollar was stronger across the board overnight after an upbeat commentary from US Federal Reserve chairman Jerome Powell.

Speaking at his semi-annual testimony to the US Congress, the Fed chief said he remained positive on the US economy despite worries about the US-China trade war.

The market saw the comments as a signal the Fed remains prepared to raises US interest rates on two more occasions this year.

NZD gains

The USDSGD climbed 0.2% as it climbed from one-week lows.

The euro fell 0.2% as it continued to fail at the major three-month highs.

The New Zealand dollar was stronger after the Reserve Bank of New Zealand indicated a pick-up in its “core” reading of inflation.

More Powell

Fed chair Powell continued to testify tonight with the US dollar recently stronger.

Further positive comments from Powell could add to the upside pressure on the USDSGD.

Tomorrow, Australian jobs will be the key announcement.

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