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Currency Market Analysis

Nov 08, 2018 | Currency Market Analysis

Global Themes

Greenback falls as Trump loses House

The US dollar fell yesterday as the crucial US midterm elections saw President Donald Trump’s Republicans lose control of the House of Representatives.

The loss will make it harder for President Trump to pursue his growth agenda causing markets to predict the US Federal Reserve might have less need to raise interest rates.

US equity markets were unfazed with the Dow Jones index up 1.8% overnight.

New lows

The USDSGD fell back to one-month lows before later recovering.

The USDSGD ended down 0.2%.

The weaker greenback saw most currencies higher with the EURSGD up 0.1% and the GBPSGD up 0.2%.

The Aussie was higher in most markets.

Eye on China

Today’s focus shifts back to China with the October trade balance due around 11.00am.

After all the to-ing and fro-ing over trade relations, Chinese trade numbers have fallen this year with the market looking for around USD35 billion in trade surplus.

The results were closer to USD50 billion per month last year.

Overnight, the US Federal Reserve meets, but no change is expected at this decision. The Fed is widely expected to hike in December.

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