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Currency Market Analysis

Jun 16, 2021 | Currency Market Analysis

Global Themes

USDSGD nears three-week highs as focus turns to Fed

The USD was stronger overnight with markets on edge ahead of tomorrow’s critical US Federal Reserve decision.

The Fed is widely expected to maintain policy settings – most notably its USD120bln per month in bond purchases – but the recent jump in price pressures has caused markets to fret that some Fed board members might consider withdrawing this stimulus program.

Last week, inflation was reported at 5.0% in headline annual terms – the highest rate since 2008.

The Fed decision is due at 4.00am.

Euro rebound

The USDSGD gained 0.1%.

The euro was stronger as the EURSGD climbed from one-month lows.

The Aussie was weaker in most markets as commodities, most notably copper, fell.

The JPY was steady near three-year lows.

Data deluge

While the tomorrow’s Fed decision is the economic highlight, there’s plenty of other data also due.

Key Chinese data is due today with industrial production and retail sales numbers released at 3.00pm.

Otherwise, markets are looking to a major speech from RBA governor Philip Lowe tomorrow, while employment figures are also due.

Australian employment is also due tomorrow.


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