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Currency Market Analysis

Jul 30, 2019 | Currency Market Analysis

Global Themes

USDSGD nears two-month highs as US sharemarkets weaken

The USDSGD neared two-month highs overnight, with the greenback stronger as US shares fell.

US stockmarkets have turned nervous ahead of this week’s major decision from the US Federal Reserve. The S&P 5000 fell 0.2% while the Nasdaq dropped 0.4%

The US Fed is expected to cut interest rates by 25 basis points to a new upper range of 2.25%.

The moves lower in sharemarkets have seen safe have currencies climb and the US dollar benefited.

Weaker

In other markets, the Japanese yen drifted lower ahead of today’s Bank of Japan meeting.

The GBP continued to fall as worries about a “no deal” Brexit pressured the British pound.

BoJ

Today’s focus is on the Bank of Japan meeting, with the BoJ expected to report around 11.00am.

The Bank of Japan, which has already lowered interest rates to below zero and embarked on the world’s largest money printing program, is expected to re-confirm its commitment to its very loose policy.

Tomorrow, the key release will be Australian inflation.

The market is looking for an increase in the annual headline rate to 1.5%. Low inflation has been one key reason for the Reserve Bank of Australia’s recent rate cuts.


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