Currency Market Analysis

Aug 27, 2019 | Currency Market Analysis

Global Themes

Trade roller-coaster drives USDSGD’s fall from highs

The ongoing new flow from the US-China trade war continued to drive the USDSGD overnight after US President Donald Trump said a trade deal can still be agreed.

Speaking at the G7 meeting in France, President Trump said prospects for a deal are the best since talks began last year.

President Trump said; “This is the first time I’ve seen them where they really do want to make a deal, and I think that’s a very positive step.”

SGD higher

The trade news saw the USDSGD ease from the two-year highs seen in early Monday trading.

The SGD was higher in most markets with the EURSGD falling from two-week highs and the JPYSGD falling from 30-month highs.

The gains might be short-lived, however, with the volatility in markets heightened by the trade uncertainty.

US slowing

US data will be closely watched after last night’s core durable goods orders unexpectedly fell 0.2%.

This reading, a key measure of business spending continues a recent trend of weaker US data.

Tonight, US consumer confidence is due, a key reading with consumer spending comprising 70% of US economic activity.

The release is due at 10.00pm.

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