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Currency Market Analysis

Oct 16, 2020 | Currency Market Analysis

Global Themes

USD higher as sharemarkets fall

The USDSGD was higher as markets looked to safe haven currencies.

The focus remains on global markets, with the risk of a broader sell-off also pressuring the SGD

Overnight, US shares lost ground, as delays to stimulus and worries about growing COVID-19 cases in Europe hit sentient. The Nasdaq led losses as it fell 0.7%.

AUD hit

The Australian dollar tumbled lower yesterday after the Reserve Bank of Australia signalled it was considering a rate cut when it next meets and looked further ahead to a new round of quantitative easing.

Additionally, the RBA also introduced “forward guidance” saying that official interest rates would not be increased for at least three years.

The euro was weaker as the UK-EU trade talks faltered overnight.

The GBP was also weaker.

Election fears

In terms of economic data, EU inflation and US retail sales will be closely watched.

Next week, the focus remains on the US election.

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