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Currency Market Analysis

Nov 02, 2020 | Currency Market Analysis

Global Themes

USD, JPY supported early with US election due this week

FX markets remained cautious on Friday as a heavy sell-off in US technology shares hit markets.

Leading technology stocks wilted on Friday the day after strong results from Apple, Amazon, Netflix and Google.

Financial markets were already vulnerable with worries about growing Covid-19 cases and tension ahead of Tuesday night’s presidential election causing heavy losses earlier in the week.

The US’s Dow Jones index fell 6.5% last week.

Euro hit

The USDSGD started this week higher with the pair at one-month highs.

The Japanese yen also gained as safe havens remained in focus.

The euro fell sharply as it neared four-month lows as Covid-19 cases grew in Europe.

Chinese data in focus

A massive week in FX markets starts Chinese manufacturing PMI released at 9.45am.

Tomorrow, the Reserve Bank of Australia meets, with the RBA broadly expected to cut rates, but questions around its appetite for a further quantitative easing program is drive volatility.

On Tuesday night, of course, the US votes in its closely-watched presidential election, with the first results due around 9.00am on Wednesday.

Later, the Bank of England and US Federal Reserve both meet.

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