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Currency Market Analysis

Jan 14, 2019 | Currency Market Analysis

Global Themes

USDSGD hits June lows as markets brace for Brexit vote

The USDSGD fell further on Friday as global sentiment remained upbeat and helped the local currency gain.

The Singapore dollar has been supported by solid moves in all emerging markets but the strong gains in the Chinese yuan have been the most obvious driver.

Yuan strength returns

In other markets, the euro was weaker as the currency failed to follow though after the move to three-month highs in the EURUSD.

The EURSGD fell 0.2% as it returned to level near 18-momth lows.

The Chinese yuan was after last week’s US-China trade talked were seen as successful.

A weaker US dollar also supported the CNY.

Brexit vote

This week, markets will be prepared for Tuesday night’s critical Brexit vote out of the UK.

Theresa May’s plans for Brexit are widely-expected to fail with major uncertainty surrounding what will happen next.

A potential vote to hand back the decision-making process to parliament will be key while a number of commentators speculate the UK will be forced to delay Brexit until July or later.

Locally, today’s focus will be on the Chinese trade balance due around 10.00am.


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