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Currency Market Analysis

Oct 30, 2020 | Currency Market Analysis

Global Themes

USD hits one-month highs as election looms

The US dollar jumped as worries about the impact of the looming US presidential election and the impact of lockdowns in Europe boosted safe havens.

US equites recovered from Wednesday night’s heavy sell-off but the SGD was unable to benefit.

The USDSGD gained 0.2% to hit one-month highs.

Euro falls

The euro fell sharply after last night’s European Central Bank meeting suggested the likely economic impact of new lockdowns would hit the European economy.

Markets now see the chance for further stimulus from ECB when it meets in December.

The AUD hit the lowest level in three months as potential rate cut from the Reserve Bank of Australia weighed on the Aussie.

Risk sentiment key

Tonight’s major release comes from the US personal consumption and expenditure measure – a key reading on inflation – although inflation readings have become less important as central banks focus on helping economies recover.

Otherwise, US equity performance will be critical, with any pre-election nerves likely to weigh on the risk sensitive currencies like the SGD

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