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Currency Market Analysis

Jul 20, 2018 | Currency Market Analysis

Global Themes

USDSGD back at one-year highs on trade fears

The USD was higher overnight as further trade tensions hit commodities. Copper lost 1.9% overnight as it fell to one-year lows.

The US dollar was later unsettled after US President Donald Trump indicated he was unhappy with recent interest rate hikes from the US Federal Reserve.

CNH selldown

Outside of the US dollar, the main focus remains on the Chinese yuan with the currency pressured by trade fears and weaker Chinese sharemarkets.

The SGDCNH neared five-year highs.

The euro was stronger overnight as it returned to two-month highs.

The AUD was weaker as the impact of yesterday’s strong jobs data quickly eased. The 51k new jobs created in June was the best result since November 2017, but ongoing weakness in wage growth means the market stayed cautious on the AUD.

Inflation key

Inflation figures will be in close focus over the next few days with Japanese inflation out early today while Canadian CPI numbers are due at 8.30pm.

Next week, all eyes will be on Wednesday’s Australian inflation release, with any disappointment in the June-quarter numbers likely to drive the AUD lower.

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