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Currency Market Analysis

Feb 12, 2019 | Currency Market Analysis

Global Themes

USDSGD jumps as greenback stages comeback

The USDSGD jumped to one-month highs overnight as weakness in international sharemarkets caused investors to move into the “safe haven” US dollar.

The US dollar has been recently supported thanks to its relatively high interest rates and the fact that US economic growth has remained stronger than most.

Overnight, a large fall in UK economic growth figures again illustrated the US economy’s relative outperformance as key global markets suffered a big slowdown in activity in the last quarter of 2018.

Brexit bash

The USDSGD climbed 0.3%.

The US dollar strength saw the euro, Japanese yen and Swiss franc mostly weaker.

The British pound was weaker after December economic growth fell a whopping 0.4% as worries about Brexit hit business confidence.

Critical confidence

Today’s local focus will be on the Australian business confidence figures after last month’s reading saw the biggest fall since the global financial crisis.

Otherwise, central banks will be key, with the Bank of England governor Mark Carney and US Federal Reserve chairman Jerome Powell both speaking overnight.

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