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Currency Market Analysis

Oct 22, 2018 | Currency Market Analysis

Global Themes

USD higher as geopolitical tension rules

The US dollar and other safe haven currencies were higher in early Monday trade financial markets wilted under geopolitical pressures.

The recent death of Saudi journalist Jamal Khashoggi, tensions surrounding the Italian budget and the approaching US midterm elections all contributed to nervous markets over the weekend.

The worries sent key equity markets lower in late trading on Friday.

Gains lost

The USDSGD slipped on Friday before recovering in early Monday trade.

The British pound gained after an EU official said a Brexit deal was “90% done”. The news boosted the British pound.

The AUD fell as markets fretted about a weaker Chinese GDP number on Friday. Chinese economic growth numbers fell to the lowest level ended Friday with a 0.3% gain but this was well below the session’s earlier highs.

US GDP

The main event this week is likely to be third-quarter US GDP numbers due on Friday. A stronger number can push the US dollar higher.

The Bank of Canada and European Central Bank both meet later this week.


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