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Currency Market Analysis

Jun 29, 2021 | Currency Market Analysis

Global Themes

USD higher as Fed raises housing fears

The USD rebounded overnight after Boston Federal Reserve president Eric Rosengren raised the spectre of higher interest rates to manage the rapid gains seen in the US housing market.

While Fed officials have been recently discussing tightening policy, the focus has been on controlling inflation, rather than managing asset prices.

Rosengren’s comments saw the conversation open on a new front causing the US dollar to climb.

Lockdown driver

The USDSGD gained 0.1%.

The British pound gained after the UK government confirmed it planned to end lockdown plans in early July.

On the other hand, the AUD was pressured as new lockdowns were announced in Brisbane and Perth.

Orr speaks

The major focus today is an upcoming speech from Reserve Bank of New Zealand governor Adrian Orr.

The NZ dollar has outperformed recently after the RBNZ brought forward forecasts for its first rate hike to September 2022.

Orr is due to speak at 12.10pm.

Otherwise, US consumer confidence is due overnight.

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