Currency Market Analysis

Jul 24, 2019 | Currency Market Analysis

Global Themes

USDSGD at one-month as budget deal boosts greenback

The USDSGD climbed to one-month highs as news of a deal between US lawmakers boosted the greenback.

Markets have been concerned that the long-running US “debt ceiling” issue could raise new problems with the US Federal government’s ability to borrow scheduled to end in about September.

However, the new agreement extends the debt ceiling for two years – well beyond next year’s presidential election – and helped the USD to gain overnight.

Euro down

The euro was weaker ahead of tomorrow night’s European Central Bank meeting.

The market sees a 45% chance of a 10 basis point cut from the ECB.

The New Zealand dollar fell on reports the RBNZ is considering “unconventional” forms of monetary policy.

Manufacturing PMI

The focus today shifts to global manufacturing numbers.

The key PMI numbers – the most up-to-date reading of manufacturing activity – are due

from Australia, Japan, Germany and the US.

A weaker set of numbers could add further pressure to markets.

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