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Currency Market Analysis

Oct 09, 2018 | Currency Market Analysis

Global Themes

USD inches higher as trade pressure bites

The USDSGD climbed to new 15-month highs as sharemarkets remained weak.

European markets opened with heavy selling in the UK and German markets causing risk sentiment to sour. Ongoing worries about the US-China trade war pressured European markets.

In FX markets, the selldown was focused on the Japanese yen pairs with USDJPY down as much as 0.8% as Europe opened.

The USD’s weakness saw the USDSGD ease lower later in the session.

Italian worries

The euro fell as the ongoing dispute between the EU and the new Italian government also weighed on the single currency.

The GBP fell as some of last week’s “Brexit deal” enthusiasm waned.

The AUD staged a small recovery overnight.

Confidence

Today’s focus is Australian business confidence.

Australian business confidence has recently fallen since May and today’s number will be closely watched.

Later in the week, US inflation on Thursday and Chinese trade balance on Friday will be the week’s major events.


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