Currency Market Analysis

Oct 03, 2019 | Currency Market Analysis

Global Themes

USDSGD slips as sharemarkets tumble

The USDSGD slipped lower overnight after a big fall across global sharemarkets.

US shares fell 1.9% overnight – following their 1.3% fall on Tuesday night – as markets continued to react to this week’s sharp drop in US manufacturing activity.

A big fall in US car sales also hit sentiment.

Key global sharemarkets were also lower with the German DAX down 2.8% and the UK’s FTSE down 3.2%.

GBP gains

The British pound was stronger as the UK’s Johnson government submitted a new Brexit agreement to the European Union.

The euro also strengthened as the EURSGD climbed from two-year lows.

Trade balance due

Today’s main release come from the Australian trade balance.

Australia’s trade position has been strong over the last few years so another positive result is unlikely to provide much spark for the AUD.

Tonight, the US economic pulse remains a likely key driver with factory orders and the ISM services survey both due tonight.

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