Currency Market Analysis

Oct 21, 2021 | Currency Market Analysis

Global Themes

Greenback lower as Dow hits new record

The greenback was mostly weaker overnight as US stocks continued to climb with the benchmark Dow Jones index hitting all-time highs overnight.

US shares were boosted by solid earnings results as the US’s September-quarter reporting season continues.

According to Reuters, 85% of reports so far have beaten expectations.

Aussie higher

The USDSGD fell 0.1% as it neared major technical support at the four-month lows.

The Australian dollar was one of the strongest currencies with the AUD traditionally tied to global growth expectations. The better numbers overnight helped the Aussie higher.

The euro and Japanese yen were both moderately higher.

US jobs watched

Tonight, US weekly unemployment claims will be closely watched tonight after job losses fell to a post-pandemic low last week.

Tomorrow, global PMI numbers – the purchasing manager index series – will provide the most up to date reading of major economies with Japan, Germany, the UK and US all due.

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