Currency Market Analysis

Nov 09, 2020 | Currency Market Analysis

Global Themes

USDSGD hits 2020 lows on Biden win

The USDSGD fell sharply this morning, down more than 0.3%, as markets reacted to Joe Biden’s presidential victory over the weekend.

Global markets had rallied strongly towards the end of last week as a Biden win looked more likely with the US’s Dow Jones index up 7.1% for the week – the best weekly gain since April.

From here, markets might face tougher tests, with markets now likely to focus on the president-elect’s ability to garner support for both stimulus and measures to reduce the spread of COVID-19.

Greenback hit

The US dollar weakness saw big moves in other currencies.

Major currencies like the euro and Japanese yen both gained strongly.

The more traditional risk sensitive currencies like the Australian and New Zealand dollars also gained.

Central banks in focus

US politics might finally take a back seat this week with a major announcement from the Reserve Bank of New Zealand the main event.

The RBNZ, due Wednesday, is expected to announce a new bank lending facility but the central bank will also be watched for any news on potential negative interest rates.

Major central banks, including the Bank of England, European Central Bank and Federal Reserve, all have major speeches on Thursday.

Get the daily currency market analysis in your Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.