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Currency Market Analysis

Aug 21, 2020 | Currency Market Analysis

Global Themes

USD weakens as Fed jitters ease

The USDSGD eased back from recent highs as markets calmed after Wednesday night’s Fed-inspired selldown.

Most major financial markets fell on Wednesday night after the US Federal Reserve disappointed markets by not signalling plans for further monetary stimulus.

However, markets bounced back overnight, with US technology stocks again leading the charge higher.

The tech-heavy Nasdaq index climbed 1.4% while the more traditional stocks in the Dow Jones gained only 0.2%.

GBP, CHF

The euro was stronger but underperformed other major European currencies.

The British pound and the Swiss franc were the strongest.

The AUD rallied sharply from yesterday’s lows.

The New Zealand dollar was weaker as focused on the potential for negative interest rates in NZ.

PMI data

The global PMI readings – the purchasing manager indexes – will be released throughout today.

These readings provide the most up-to-date gauge of global economic activity.

Later, Japanese, German and US numbers are released.


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