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Currency Market Analysis

Oct 08, 2019 | Currency Market Analysis

Global Themes

USD stages comeback as sharemarkets turn lower

The US dollar came back strongly overnight with markets heading into safe haven assets as the geopolitical picture worsened.

In the Middle East, news the US military would pull out of Syria upset financial markets with tensions already heightened after last month’s strike on Saudi oil facilities.

Meanwhile, US-China relations are in focus, with a new round of trade talks due this week.

China has cast doubts on the size of the deal saying that it will narrow its focus on to a few, key topics.

Aussie lower

US shares, as measured by the benchmark Dow Jones index, fell 0.5% as markets reversed back near key highs.

The news boosted the USDSGD with the pair up 0.2%.

The British pound weakened as hopes for a Brexit deal faltered.

Fed in focus

In terms of upcoming news, the US Federal Reserve remains in focus with chairman Jerome Powell speaking tonight.

Overnight, Powell noted that independence remains key for the Federal Reserve.

In Australia, local business confidence will be closely watched.

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