Currency Market Analysis

Dec 10, 2018 | Currency Market Analysis

Global Themes

US dollar, JPY gain as US sharemarkets tumble

The US dollar was higher this morning as heavy selling in US sharemarkets on Friday hit sentiment.

The US’s technology-focused Nasdaq led the losses on Friday as markets continued to react to the arrest of the Chinese IT firm Huawei’s CFO on sanction-breach charges.

The arrest was seen as potentially adding to tensions between the US and China.

The Nasdaq fell 3.3% as the broader US sharemarket suffered its worst week for losses since March.

Falling

The US dollar’s gains were moderated after the US jobs report came in below expectations causing markets to become less convinced of a rate hike when the US Federal Reserve meets next week.

The Japanese yen was also stronger.

In other markets, the euro gained ahead of this week’s European Central Bank meeting.

The British pound weakened ahead of this week’s key Brexit vote.

Busy

A busy week in international markets will see the UK’s Brexit vote on Tuesday night before US inflation numbers are released on Wednesday.

On Thursday, the European Central Bank meeting is due while Chinese industrial production and retail sales will be released on Friday.


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