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Currency Market Analysis

May 27, 2019 | Currency Market Analysis

Global Themes

USD weakens as China aims to ease

The US dollar fell on Friday after a poor durable goods reading hit the greenback.

Key markets, including the Singapore dollar, started the new week higher after a weekend report suggested the Chinese government was considering further policy easing.

A report in the Global Times — seen as a mouthpiece for Beijing — said the People’s Bank Of China should adopt an easing stance.

“China should adopt a moderately loose monetary policy [due to]...the prolonged trade war with the US and...non-performing loans in the domestic banking system"

The report was seen as key with the Chinese economy only partially responding to earlier rounds of stimulus.

Pound hit

The GBP fell to one-month lows after last week’s resignation of UK prime minister Theresa May and early reports from the EU elections signalled a strong performance for Nigel Farrage’s Brexit party.

The AUD jumped to two-week highs this morning as it built on last week’s recovery.

Memorial Day

The US’s Memorial Day holiday means the overnight action might be subdued but later in the week the data restarts.

US GDP is due Thursday night

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