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Currency Market Analysis

Oct 09, 2020 | Currency Market Analysis

Global Themes

SGD strengthens as markets stay hopeful on stimulus

The Singapore dollar was mostly higher overnight as markets remained focused on the potential for a further round of US stimulus.

The market remained more positive despite the fact that Democratic leader Nancy Pelosi said any partial package, especially around support for the airlines, needed to contingent on further support.

The US’s Dow Jones index climbed 0.4%.

Republicans and Democrats have recently argued over the size of the deal with President Trump ending negotiations on the larger package earlier this week.

Climbing

The USDSGD fell 0.1%.

The euro fell as markets speculated about the chance for further stimulus from the European Central Bank.

Last week’s poor EU inflation reading has seen a weaker euro with the AUDEUR pair nearing two-year highs.

The British pound was stronger as it regained strength on hopes for a UK-EU trade deal.

UK focus

The UK remains in focus tonight with a series of major announcements.

Monthly GDP, trade balance and industrial production, all for August, are released at 5.00pm AEDT.

Next week, Chinese trade on Tuesday, Australian jobs on Thursday and US retail sales on Friday will be the key releases.


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