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Currency Market Analysis

Oct 22, 2019 | Currency Market Analysis

Global Themes

Greenback hits three-month lows as US shares climb

An improved session in US sharemarkets helped the Singapore dollar overnight with the USDSGD falling to three-month lows.

US shares had a positive night with the S&P 500 up 0.7% and the Nasdaq up 0.9%. The Dow was up only 0.3% as Boeing’s woes pressured the market.

The USDSGD fell 0.2%.

Negative JPY positive for markets

In other markets, the Japanese yen fell.

The JPY is seen as an important sign of “risk appetite” and the overnight falls provide further evidence of the improvement in sentiment since reports of a US-China a trade deal earlier in the month boosted market optimism.

In the UK, another delay to Boris Johnson’s Brexit vote saw only a small loss in the British pound, with the market waiting for further progress over the rest of the week.

Trudeau on the edge

Politics continues to dominate FX markets with a close election in Canada likely to drive activity in the Canadian dollar.

The Canadian dollar has been well supported in this year with the Bank of Canada keeping rates steady in 2019.

Current prime minister Justin Trudeau is forecast to cling on to power, potentially in a minority government. The Canadian election results are due this morning.

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