Currency Market Analysis

Oct 29, 2021 | Currency Market Analysis

Global Themes

USD index falls to one-month lows after US GDP miss

The Singapore dollar was higher overnight after a miss in US GDP caused the greenback to fall.

The USD index fell to the lowest level in a month after third-quarter US GDP was reported at 2.0% versus expectations for 2.6%.

Most interestingly, longer-term US bond yields have recently fallen, while shorter-term yields have climbed, a sign that markets are worried about interest rates hikes in the short-term but an economic slowdown in the longer term.

Euro rebounds

The USDSGD fell 0.3%.

The British pound was steady while the JPYSGD fell 0.1%

The euro was the standout performer with EURSGD up 0.4%.

US PCE eyed

European data will be watched today with the early reads from German and French GDP.

EU inflation is also due.

From the US, the key PCE measure (personal consumption and expenditure.

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