Currency Market Analysis

Nov 11, 2019 | Currency Market Analysis

Global Themes

Greenback favoured as sharemarkets climb

The greenback was higher on Friday as stronger sharemarkets and higher US bond yields caused markets to favour the US dollar.

All three major US sharemarket indexes closed at all-time highs on Friday while a major reversal in US bond yields caused the ten-year bond yield to close at 1.93% -- the highest level three months.

Higher US bond yields can boost the US dollar as investors look for higher returns.

The US dollar index climbed to the best level in one month.

Two-week lows

The USDSGD climbed 0.2% as it lifted from four-month lows.

The Japanese yen was stronger as markets remained nervous on the US-China trade relationship.

The New Zealand dollar was lower ahead of a possible rate cut from the Reserve Bank of New Zealand.

The RBNZ meets on Wednesday.

Employment

This week, the US Federal Reserve chairman Jerome Powell speaks on Wednesday night, with US inflation also due on Wednesday night.

Later, key Chinese data, including industrial production, is due on Thursday.

Australian employment figures are also to be released on Thursday.


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