Currency Market Analysis
Jul 11, 2019 | Currency Market Analysis
USD tumbles as Fed confirms cuts
The US dollar fell overnight as the US Federal Reserve chair Jerome Powell signalled he was prepared to cut interest rates when the Fed next meets on 1 August.
Powell said: “It appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook.”
Powell said he act “as appropriate.”
The news was seen as a sign the Fed would cut rates, with equities and more risk-sensitive currencies like the Singapore dollar rising.
The USDSGD fell 0.3%
The commodity currencies like the Australian and New Zealand dollars were also stronger.
The focus remains on the US overnight with inflation due at 8.30pm.
Tomorrow, Chinese trade balance is the major release.
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