Currency Market Analysis

Apr 29, 2019 | Currency Market Analysis

Global Themes

Greenback slips despite better US GDP

The USD slipped on Friday despite a much stronger than expected reading from US March-quarter GDP boosted risk appetite across the globe.

While the headline GDP number was better, a slowdown in inflation cause markets to fret the US Federal Reserve might need to cut interest rates.

The US bond market indicates a 65% chance of a rate cut by the end of the year (source: Reuters).

Mostly higher

The USDSGD fell 0.1% as it slipped from four-month highs.

Most other currencies were higher with the euro and Japanese yen both gaining.

US focus

The US remains in focus this week with tonight’s inflation reading the first major release.

US personal consumption and expenditure numbers are due at 8.30pm.

Later, the Federal Reserve meets on Thursday morning with US employment numbers on Friday night.

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