Currency Market Analysis

Apr 09, 2020 | Currency Market Analysis

Global Themes

Greenback inches higher as Dow extends rally

The US dollar was moderately higher in line with big gains in the US sharemarkets overnight.

The US benchmark Dow Jones index was up 3.4% overnight – with the week’s gains now at 11.7% -- as a reduction in the rate of growth in US coronavirus cases boosted hopes that social distancing was having an impact.

Also, key sectors gained on news Democratic candidate Bernie Sanders had ended his campaign. Healthcare stocks led the gains.

Four-week lows

The USDSGD climbed 0.2%.

The US dollar climbed from four-week lows.

The US dollar gains saw most other currencies weaker.

The EURSGD fell 0.2% while the JPYSGD was flat.

Oil watch

Commodity markets will be key over the next 24 hours with an important OPEC meeting potentially seeing a reduction in production and boosting oil prices.

Crude oil gained 10% overnight ahead of this meeting.

Otherwise, the US weekly unemployment claims are critical, with the last two weeks seeing a total of also 10 million new jobless applications.

The market is looking for 5 million new applications tonight.

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