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Currency Market Analysis

Jul 19, 2019 | Currency Market Analysis

Global Themes

USD dipped as William NY Fed President stands dovish

USD index fell after William NY Fed President speech about pre-emptive measure that raised investors speculation to expect 50bp rate cut next week and USDSGD is softened marginally last night.

Stock market remain cautious but solid last night and US treasury yield continue to slide down across 2y – 10y. 10 year yield still holds up the critical rate above 2%.

This week was peaceful but focus is next week

Some of crucial events are scheduled.

New UK Prime Minister is expected to announce next week that may give an impact to currency market especially GBP and EUR. Boris Johnson who was a face of Brexit in 2006 and is in favor of hard BREXIT is taking a lead on the vote at present.

ECB is also scheduled and Draghi will continue to lead the meeting until the end of Oct 2019 and Christine Lagarde first female ECB governor will take over from 1 Nov 2019.

Lastly on Friday, US preliminary GDP for Q2 will be announced. If it comes out stronger than expected, I would expect the stronger USD and vice versa.

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