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Currency Market Analysis

Mar 26, 2020 | Currency Market Analysis

Global Themes

USDSGD climbs from one-week lows as stimulus excitement ebbs

The USDSGD climbed from one-week lows overnight as the initial excitement from the US government’s massive stimulus packed.

The US’s Dow Jones backed-up Tuesday night’s 11.4% surge with another 2.4% gain overnight, but the market did ease from earlier, stronger gains.

The new plan offers more than USD2b for household and

businesses in a program that is more than twice as large as the post-GFC stimulus package.

Some last-minuet disagreements between Republicans and Democrats about the detail of the plan also unsettled markets.

The USDSGD was up 0.1%.

The other safe haven currencies also saw some strength return with the euro and Japanese yen both higher.

Jobless caims key

In terms of data, the near-term focus will be on tonight’s US weekly unemployment claims.

The market is expecting one of the worst results in history with expectations for a rise from 281k to 1.5m. Some forecasts are looking to a rise to 4m.

The market reaction to this result will be critical.

The Bank of England also meets tonight with the British pound close to 35-year lows against the US dollar.

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