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Currency Market Analysis

Jan 17, 2019 | Currency Market Analysis

Global Themes

USD slips as Dow gains further

The USDSGD was weaker overnight as the US sharemarket extended gains.

The US’s Dow Jones recently pushed above the key one-month highs boosted by a solid start to the US fourth-quarter reporting season.

Banks, in particular, have performed well.

Weaker in Europe

The EUR was weaker as markets continued to react to yesterday’s speech from ECB president Mario Draghi who signalled that while growth was slowing in Europe, he didn’t not expect the area to fall into recession.

The GBP was stronger after UK prime minister Theresa May survived no confidence vote.

The GBP has gained as markets appear to be increasingly convinced that a no deal Brexit is less likely. The potential for a Brexit delay is providing support to the GBP.

Exports slow

In early trade, a weaker result from Singapore non-oil exports weighed on the SGD.

Singapore exports fell 5.7% well below the 2.0% rise expected. This news is likely to be a negative regionally as it followed the poor Chinese trade earlier this week.

Tonight, European inflation will be closely watched, with the headline rate recently falling from 2.2% to tonight’s forecast rate of 1.7%.

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