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Currency Market Analysis

Mar 17, 2020 | Currency Market Analysis

Global Themes

Markets remain on edge as Dow suffers third-worst session ever

The coronavirus crisis continues to weigh on markets with the US’s Dow Jones index seeing its third-largest loss ever overnight.

The Dow was down 12.9% in a fall only eclipsed by 1929 and 1987’s historic crashes.

US shares gave-up Friday’s almost 10% rally as government action to end gatherings of more than ten people in the US – until the end of March – signalled an unprecedented economic shutdown.

The USDSGD eased back as the greenback felt the pressure of Wall Street’s selling.

The EURSGD fell 0.1% while the GBPSGD fell 0.1%.

The AUD fell to new 12-year lows. Yet again, the Australian dollar, with its tight linkage to global growth expectations, was one of the worst performing major currencies.

Data ignored

Looking forward, data is unlikely to be the major driver of markets.

Yesterday, China data illustrated some of the potential impact of the coronavirus, with industrial production down 14% in February and retail sales falling an incredible 21%.

Instead, the focus will be on international government action, with further shutdowns likely to pressure markets.

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