Currency Market Analysis

Feb 25, 2020 | Currency Market Analysis

Global Themes

Dow plunges on new coronavirus fears; USDSGD lower

US sharemarkets plunged overnight as new fears about the impact of coronavirus caused investor sentiment to turn negative.

The US’s Dow Jones index fell more than 1000 points, a drop of 3.6%, in the biggest one-day fall in two years.

Weekend reports of seven deaths in Italy and up to 70 deaths in Iran sparked worries about contagion outside of Asia.

USDSGD slips

The USDSGD fell 0.2% as it continued to fall from three-year highs.

The SGD was weaker in other markets with the EURSGD up 0.2% and the JPYSGD up 0.9%.

Confidence key

US sharemarkets were already vulnerable after a big fall in economic activity that was reported on Friday.

US manufacturing PMI produced a shock result of 50.8 (versus the 51.5 expected) while the services index fell into contraction at 49.4 (versus the 53.3 expected).

As a result, tonight’s US consumer confidence numbers will be seen as critical.

The US’s Richmond manufacturing index will also be closely watched.


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