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Currency Market Analysis

Mar 04, 2021 | Currency Market Analysis

Global Themes

USD higher as bond yields rise again

The US dollar was stronger overnight as US bond yields resumed their rise causing sentiment to falter.

US sharemarkets were hit with the technology-focused Nasdaq taking the largest losses as it fell 2.7% overnight.

The USDSGD gained 0.2%.

GBP higher

The British pound gained as the US government announced further spending and an extension of its furlough scheme to support workers.

The GBPSGD gained 0.2%.

The Aussie was weaker despite earlier gains after a stronger than expected GDP report. Australian December—quarter GDP was reported at 3.1% -- well above expectations for 2.5%.

The JPYSGD fell 0.1% while the EURSGD was steady.

US on watch

Tonight, a major speech from US Federal Reserve chair Jerome Powell will be closely watched as markets gauge the Fed’s reaction to rising bond yields.

With inflation a growing concern, tonight’s US productivity and labour cost data will also be key.

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