Currency Market Analysis
Mar 26, 2021 | Currency Market Analysis
USD nears 2021 highs as US inflation figures due
The USDSGD neared the year’s highs this morning with the greenback continuing to stay in favour.
The greenback has been stronger over the last month as the positive impact of President Joe Biden’s USD1.9 trillion boosted economic forecasts and US bond yields.
The US dollar index hit new four-month high overnight.
The USDSGD gained 0.2%.
The euro was hard hit as worries about the impact of new lockdowns in Europe pressured the currency.
The EURSGD fell to nine-month lows.
The British pound and Japanese yen were both higher.
With global focus on the US dollar, tonight’s inflation data will be closely watched.
The personal consumption and expenditure figures (PCE) are the Federal Reserve’s preferred measure of inflation.
A higher number might boost yields, see further gains for the greenback, and push the USD higher.
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