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Currency Market Analysis

Jul 12, 2021 | Currency Market Analysis

Global Themes

USD slips ahead of key week with US CPI, China GDP

The US dollar fell as US shares recovered to end a torrid week.

The US’s Dow Jones index climbed 1.3% as US ten-year bond yields recovered from five-month lows and the greenback eased from recent highs.

USDSGD falls from highs

The USDSGD fell from eight-month highs after earlier reaching the highest levels since November last year.

The euro and British pound were both higher.

The Chinese yuan gained after the Peoples Bank of China announced a reduction in the reserve ratio requirement in a move that will allow banks to lend more.

RBNZ in focus

In a big week for FX markets, the Reserve Bank of New Zealand is likely to be the highlight.

The RBNZ has signalled it is closer to considering higher interest rates as the NZ economy recovers and the housing market remains overheated.

The RBNZ is due on Wednesday.

US inflation, due Tuesday night, and Chinese GDP, due Thursday, are the other major announcements.

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