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Currency Market Analysis

Dec 02, 2019 | Currency Market Analysis

Global Themes

USDSGD at six-week highs as markets look to trade

The USD was mostly higher on Friday as markets remained on edge ahead of a critical week for the US-China trade story.

The tensions between the two countries grew after the US government warned it would introduce sanctions or take diplomatic action if it believes China is exerting unreasonable pressure on Hong Kong.

China responded by saying it would provoke “firm counter measures”.

This week’s trade talks are seen as critical after tensions grew last week.

Can the US and China agree on terms by the end of 2019?

Euro gains

The euro was stronger after a better result from European inflation.

The Australian dollar was mostly weaker on Friday as markets look ahead to September-quarter GDP on Wednesday. The third-quarter growth numbers are expected to see a small improvement to 1.7% from the 1.4% seen last quarter.

Chinese data

Chinese private sector Caixin manufacturing numbers are due at 8.45am.

The official numbers, released over the weekend, were better than expected.

US manufacturing numbers are also due tonight.

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