Currency Market Analysis

Feb 11, 2020 | Currency Market Analysis

Global Themes

USDSGD remains at highs as coronavirus fears drive tensions

The USDSGD remains at recent highs as ongoing fears around the impact of the deadly coronavirus pressured currencies like the Chinese yuan, Singapore dollar and the Australian dollar.

Since the coronavirus concerns saw Chinese countermeasures introduced in late January, the biggest losses have been seen in currencies closely tied to Chinese economic growth, travel and tourism.

On the other hand, the best performing currencies have been the safe havens, with the

US dollar, Japanese yen and Swiss franc outperforming.

USD pressure

The euro fell from five-month highs as the stronger USD pressure the currency.

The Canadian dollar fell as oil prices lost ground.

The New Zealand dollar was weaker ahead of tomorrow’s key Reserve Bank of New Zealand meeting.

Confidence due

Today’s early focus will be on Australian business confidence figures.

Australian business confidence fell sharply last month as worries about the impact of the Australian drought and bushfire crisis hurt sentiment.

Later tonight, the US Federal Reserve chair Jerome Powell presents his semi-annual testimony to Congress.

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