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Currency Market Analysis

Mar 09, 2021 | Currency Market Analysis

Global Themes

RMB weakest since November as Nasdaq selldown resumes

The USD was stronger again overnight as the brutal sell-off in US technology stocks continued.

The technology-focused Nasdaq fell 2.9% overnight bringing the index’s total loss over the last three weeks to 11.5%.

US technology stocks – the market leaders in last year’s massive equity rally – have significantly underperformed as US bond yields climbed.

On the other hand, the more traditional Dow Jones index hit a new all-time high overnight.

USD higher

The US dollar led the overnight gains as the benchmark 10-year bond yield ended at a post-pandemic high of 1.59%.

The HKDCNH climbed 0.6%.

With the US dollar stronger, other major FX markets like the euro and Japanese yen took big losses.

Europe in focus

Tonight, the focus is on Europe, with final GDP and employment numbers due.

Tomorrow, the Reserve Bank of Australia governor Philip Lowe speaks at the Australian Financial review Business Summit.

Wednesday night sees the most up-to-date US inflation report.

The European Central Bank brings down its latest policy decision on Thursday.

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