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Currency Market Analysis

Oct 30, 2019 | Currency Market Analysis

Global Themes

USDSGD steady at lows ahead of GDP, Fed

The USD remained steady near three-month lows overnight with markets on edge ahead of a series of key US releases.

Financial markets were mostly cautious after US shares reached al-time highs on Monday night.

Most importantly, the US bond market expect the US Federal Reserve to cut rates tonight with a 95% probability according to the latest data from Reuters.

UK heads back to polls

The British pound was mainly steady after the Johnson government managed to obtain an early election.

The new UK vote is due on 12 December.

The Australian dollar was higher in all major markets overnight after a key speech from Reserve Bank of Australia governor Philip Lowe.

Lowe signalled that negative interest rates are not part of his current plans. Lowe said that negative interest rates in other parts of the world had a “pernicious” effect on the financial system.

Inflation key

A big 24 hours is expected in markets with US GDP and the Federal Reserve both due.

US GDP is expected to fall back to 1.6% in annual terms as the global slowdown hits the

US economy.

US GDP is due at 8.30pm.

The Fed meets at 2.00am.

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