Currency Market Analysis

Nov 20, 2020 | Currency Market Analysis

Global Themes

USD climbs from lows as COVID worries pressure markets

The US dollar was higher overnight as global markets stumbled on worries about growing COVID-19 cases.

Additionally, moves by the US Treasury to suspend certain lending programs from the Federal Reserve also unsettled markets.

The USDSGD gained 0.3% as it extended Wednesday’s gain from two-year lows.

Euro, yen gain

The euro was also higher with the EURSGD jumping from three-month lows.

The Japanese yen was also higher.

An extremely positive Australian jobs report couldn’t help the Australian dollar yesterday with the major resistance near two-year highs continuing to weigh on any further gains.

The October jobs report found 179k were created last month – well above the expectations for a 30k drop.

Retail due

The Australian economy remains in focus with an early read of October retail sales due.

Later, UK retail sales are due, with the GBP recently storage on hopes that the UK and EU might soon reach a trade deal.

Next week, the markets will look to key activity measures – PMI – from major global economies while the US Federal Reserve minutes are due later in the week.

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