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Currency Market Analysis

Aug 02, 2021 | Currency Market Analysis

Global Themes

Greenback gains as US shares fall on Friday

A weaker report from Amazon, down 7.5% on Friday after disappointing earnings, and lower than expected US inflation, combined to hit sentiment on Friday night.

US shares fall and the greenback gained.

The US dollar rebounded after a tough week for the currency that saw the USD index drop to one-month lows after the US Federal Reserve took a more cautious approach to withdrawing stimulus.

USDSGD climbs from lows

The USDSGD gained 0.2%.

The stronger USD saw the euro, British pound and Japanese yen both give up recent gains.

The Australian and New Zealand dollars both fell back towards recent losses.

RBA ahead

Today, China’s Caixin manufacturing PMI, due at 9.45am, will be closely watched.

Tomorrow’s Reserve Bank of Australia decision will also be key.

The RBA turned more confident on the Australian economy last month, and began a reduction in bond buying, but the extended Sydney lockdown is likely to impact that move.

Overseas, all eyes will be on Thursday’s Bank of England decision and Friday’s non-farm employment change on Friday night.

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