WorldFirst Currency Specialist, Daniel Chua, looks at the key trends of August and considers the many diverse events set to shape global currency markets throughout September.
USD – Strong upward momentum
Month in review
USD/SGD continue to push higher, breaking new highs in August, touching the high at 1.380.
The demand for the dollar as a safe haven due Turkish Currency Crisis has propelled the greenback further.
What’s next?
The trade war between USA and China will be the focus with an additional $200 billion worth of tariffs to be added.
GBP – Currency plunges around Brexit uncertainties
Month in review
GBP/SGD had a rough month tumbling to lows of 1.750 level. The Brexit uncertainties and the dollar strength have pushed the pound to a fresh 1-year low against Singapore dollar.
What’s next?
The Brexit uncertainties will be the key indicator for the volatility of the sterling – the direction of the currency is not yet clear.
AUD – Slumped on economic and political uncertainties
Month in review
The AUD/SGD plunged to a 2-year low hitting 0.9840 level on 3rd September. The weakness of the AUD is contributed by the slowing economy, the global trade war and also the political uncertainties in the country.
What’s next?
The Reserve Bank of Australia plans will be closely looked at as support for the Australian Economy. Low-interest rates will be the key to achieve the target inflation rate and also improving the economy.
EUR – Volatile on exposure to Turkey
Month in review
The EUR/SGD has a volatile month due to the Turkish currency crisis. The pair hit a low of 1.5615 before erasing all the losses when the Turkish lira recovered.
What’s next?
The Euro will be heavily dependent on politics in the coming months with Turkey, Britain and Italy agendas on the table.
Disclaimer:
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based on multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.