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Currency Market Analysis

Apr 28, 2020 | Currency Market Analysis

Global Themes

USDSGD at two-week lows as Dow gains further

The USD was weaker again overnight as a push higher in US share boosted the local currency.

US shares gained as hopes grew for a relatively quick return to economic activity in both Europe and the US.

The benchmark Dow Jones gained 1.5% with the index now down only 18% from its February highs.

BoJ action

The Japanese yen weakened after the Bank of Japan extended it stimulus program by pledging to increase upper limit of its corporate bond-buying by threefold.

The BoJ said there would be no limit to its government bond purchases.

The EUR continued to weaken after last week’s poor PMI data.

The NZD fell as observers increasingly looked to the possibility of negative interest rates in NZ.

US in focus

Tonight, US consumer confidence is due, an important gauge on how the US is handling the coronavirus pandemic, at least in terms of economic sentiment.

Tomorrow, US first-quarter GDP numbers are due, with the market likely to overlook this increasingly historical data.

On Thursday, the US Federal Reserve is due to meet.

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