Currency Market Analysis
Feb 19, 2020 | Currency Market Analysis
USDSGD ends highest since May 2017 on Apple warning
US shares fell overnight as the impact of Apple’s profit warning, in which the technology giant said a slowdown Chinese production would hit earnings, hit sentiment.
The US dollar was sharply higher overnight as FX markets favoured safe havens.
The USDSGD ended with the highest close since May 2017.
The Japanese yen was also higher.
The impact of the deadly coronavirus continued to weigh in other markets.
The euro tumbled on a sharp drop in German business confidence.
The Australian dollar was weaker again yesterday after the Reserve Bank of Australia warned about the impact of coronavirus on the Australian economy.
In yesterday’s RBA minutes, the board noted that coronavirus was “a new source of uncertainty” and was likely to subtract from export growth in the first half of 2020.
The impact of the coronavirus on the US economy might be prominent as the US Federal Reserve release the minutes from its 31 January tonight.
The US bond market expects a Fed rate cut by September.
Also tonight, the US releases producer prices after last week’s consume price inflation missed expectations.
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