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Currency Market Analysis

Jan 09, 2020 | Currency Market Analysis

Global Themes

Markets rebound as tensions ease, but USD hold steady on jobs

An easing of geopolitical tensions saw equity markets mostly higher overnight.

US shares gained as an Iranian attack on US bases yesterday was seen as broadly restrained and a speech from US President Donald Trump also deescalated tensions.

The US’s Dow Jones gained 0.5% while the Nasdaq jumped 0.8%.


The safe haven markets, however, were mixed, with the Japanese yen falling as investors calmed.

The Japanese yen neared six-month lows.

The US dollar, on the other hand, helped steady after a strong ADP jobs reading, up 202k, signalled the potential for a better non-farm payrolls number tonight

China, Germany key

Key data from two of the world’s key economies will drive FX markets today.

From China, inflation figures are due at 9.30am, while later, German production figures will be closely watched.

In Australia, with the RBA focused on the domestic economy, tomorrow’s retail sales will be seen as critical.

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