Currency Market Analysis

Nov 18, 2020 | Currency Market Analysis

Global Themes

USDSGD lower as Chinese yuan move boosts Asia

FX markets were driven overnight by weaker sharemarkets while further gains in the Chinese yuan boosted the Asian currencies.

US shares lost ground overnight after a super-charged rally saw the Dow Jones jumped an incredible 15% in just over two weeks.

The USDSGD fell 0.2% as it neared two-year lows.

Yuan gains

The CNY continued to gain strongly overnight with the USDCNY falling to the lowest level in two years.

The CNY’s gains might continue with the Chinese government apparently comfortable with recent moves

The British pound gained strongly on hopes we might see UK-EU trade deal.

The Australian dollar reversed again at the major two-year highs overnight as US shares fell.

UK CPI due

The early focus will be on the Reserve Bank of Australia governor Philip Lower who speaks on the topic “Australia’s economic recovery post-Covid” this morning.

Later, UK inflation is due.

Tomorrow, the major release will be Australian monthly employment.


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