Currency Market Analysis

Feb 18, 2019 | Currency Market Analysis

Global Themes

USD is hammered again on the back of Dovish comment from Mary Daly, President of San Francisco FRB

USD had been buoyant for the first 2 weeks of February.

USDSGD rebounded from 1.3438 low on 31 Jan 2018 to 1.3614 high last week. But on Friday, we saw a lower USD after Mary Daly suggested that FOMC voters should not raise the policy rate this year.

USDSGD is trading in the middle range of 1.35 and USDJPY was hammered from 111 to middle range of 110. While the blend of Trade talks between two big countries, China and USA, and two-times rate hikes projected by FOMC members makes USD direction cloudy. This week, the economic calendar is not very busy but FOMC meeting minutes may give market players some excitement.

JPY may be supported by the repatriation

We saw USDJPY rose to above 111.00 last week on the back of more relaxed tension in stock market.

However, JPY seasonal demand in March has been began and the current level to most of Japanese corporations should be comfortable while the internal budget rate should be below 110. As a result, JPY may be struggling between the real JPY demand to strengthen JPY and relaxed risk sentiment especially in stock market may weaken JPY.

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