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Currency Market Analysis

Jun 26, 2020 | Currency Market Analysis

Global Themes

Euro slips as US trade tensions grow

The USDSGD drifted lower in a quieter overnight session with most markets positing gains despite growing fears about the COVID-19 pandemic.

US shares were mostly higher with the best gains seen in the financial stocks as markets hoped the US Federal Reserve’s bank stress tests, released this morning, would be broadly positive.

The US’s Dow Jones was up 1.2%

US data was mixed with durable goods orders better, but unemployment claims continued to climb by more than expected.

Euro down

The euro fell as renewed trade tensions between the US and European weighed on the EUR.

The Japanese yen was also weaker as Bank of Japan governor Haruhiko Kuroda signalled his willing to expand monetary stimulus. The JPYSGD hit two-week lows.

Be prepared

The data flow slows as we end the week, but next week’s releases will see some major events.

Today, inflation readings from Japan and US are notable.

Next week, Chinese manufacturing numbers are released early, while the all-important US non-farm payrolls is due next Friday.

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