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Currency Market Analysis

Dec 21, 2018 | Currency Market Analysis

Global Themes

This is the last edition of the Daily Market Update for 2018. Apart from the major public holidays, our offices will be open during the Christmas – New Year break.

We’d like to say thanks for your business this year and look forward to working with you in 2019. Daily Market Update will be back on 7 January. Merry Christmas!

USD slips

The USD dropped sharply overnight – with the USD index at the lowest level in three months – as the ongoing selling in US sharemarkets continued.

The US’s Dow Jones index fell another 2.0% overnight with the benchmark sharemarket down 15.2% from the October highs.

A global economic slowdown, this week’s rate hike from the US Federal Reserve and a potential US government shutdown have contributed to the market weakness.

Mixed

The greenback’s weakness saw the USDCNY fall 0.2%.

In other markets, the euro climbed 0.8% while the Japanese yen gained 1.1%.

US data

This week ends with key US data with third-quarter GDP and the latest durable goods orders figures also due.

In the near term, the potential shutdown of the US government and the performance of US equity markets is likely to be the major driver of FX markets over the break.


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