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Currency Market Analysis

Sep 10, 2019 | Currency Market Analysis

Global Themes

USDSGD slips further on rate cut hopes

The USDSGD slipped further overnight – dropping to one-month lows – as global equity markets inched higher.

Global optimism was boosted ahead of key meetings from the European Central Bank this week and the Federal Reserve next week.

Both central banks are expected to loosen monetary policy.

Europe better

We saw an improvement in European markets with the pound higher on better economic data and the euro stronger on hopes for better data.

In the UK, second-quarter growth figures found the country avoided a technical recession with June-quarter growth at 0.3%. The March-quarter figures had slipped into the red.

In Europe, growing expectations for a large-scale stimulus program from Germany saw the euro recover from recent lows.

Getting down to business

Australian business sentiment is due at 9.30am.

Key Chinese data is released, with inflation and new loans due.

In particular, new loans will be watched closely over the next few months after the Chinese government loosened lending restrictions over the weekend. Of course, this move won’t be reflected in today’s numbers.

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