Currency Market Analysis

Aug 22, 2019 | Currency Market Analysis

Global Themes

Greenback slips as markets look to Jackson Hole

FX markets were broadly unmoved overnight with traders on edge ahead of tonight’s first day of proceedings at the all-important Jackson Hole Symposium.

The Jackson Hole Symposium will host central bankers, policymakers and economists from all around the world to discuss potential policies to handle the ongoing global slowdown in an environment of near-zero interest rates.

Markets will be looking for clues about potential action from Europe ahead of the European Central Bank’s 12 September meeting. Japan is also expected to soon loosen policy.

US Federal Reserve chairman Jerome Powell is due to speak at 9.00pm on Friday (local time) with the market watching for the Fed to react to US President Donald Trump’s call to cut US rates by 1.0%.

Small loss

The USDSGD saw a relatively small loss of 0.1%.

The euro and Japanese yen also fell.

PMI

Apart from Jackson Hole, today’s focus is on the release of the most up-to-date

manufacturing gauges, the global PMI (purchasing mangers’ index).

These measures provide a key reading of the health of the global economy with the fall in Chinese numbers at the start of 2018 providing the first evidence of a broader global slowdown.

Chinese and German numbers both now signal economic contraction while the US numbers, due at 11.45pm, are close to slipping into contraction territory with the last reading at 50.5. Anything below 50 signals an economic contraction.


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