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Currency Market Analysis

Mar 12, 2021 | Currency Market Analysis

Global Themes

USD slips, equities gain, as Biden signs stimulus bill

The US dollar extended this week’s losses with the final approval of the US stimulus package boosting sentiment across the globe overnight.

US President Joe Biden signed the USD1.9 trillion stimulus deal overnight with an upcoming speech tonight to be closely watched.

According to the OECD (Organization for Economic Cooperation and Development) the package is expected to lift US GDP in 2021 from 3.0% to around 6.5%.

The US’s Dow Jones and S&P 500 both ended at new all-time highs.

USDSGD lower

The USDSGD fell 0.3% to hit one-week lows.

The euro was up 0.2% after the European Central Bank signalled it would slightly increase the pace of its bond buying to ease gains seen in European bond yields.

The Japanese yen fell while the British pound gained.

Chinese, Fed ahead

We’ve got some data from the UK and Canada today but the real focus is on next week.

Tonight, UK GDP is due, while Canadian jobs figures are released later.

More importantly, Chinese production and retail sales data is due on Monday, while the US Federal Reserve decision on Thursday will be the highlight.

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