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Currency Market Analysis

Sep 04, 2020 | Currency Market Analysis

Global Themes

USD jumps as US stocks tumble, Nasdaq down 5.2%

A big sell-off in US stocks, led by technology companies, sent the heebie-jeebies through financial markets overnight.

The US’s Dow Jones index fell 2.8% while the Nasdaq dropped 5.2%.

US technology stocks has led a super-charged rally over the last six months with the tech-focused Nasdaq index up an incredible 83% from its mid-March lows before last night’s reversal.

Safe havens favoured

The USD was higher as markets favoured safe havens.

The USDSGD gained 0.2%.

The euro was mostly stronger and was the Japanese yen.

More risk sentiment currencies, like the Chinese yuan and Australian dollar, were weaker

US jobs

The markets might be tested further by tonight’s major release of the month US jobs report.

The market is looking for 1.4m jobs to be returned to the US labour markets; however, mixed results from other reemployment readings have cast some doubt.

The US jobs report is due at 8.30pm.

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