WorldFirst takes a look at the key trends of October and considers the many diverse events set to shape global currency markets in November.

 

GBP: BOE hints at rate hike

Month in review

 GBP/SGD erased its gains from the previous month, reaching a low of 1.777, before closing at 1.787 in the final week. Brexit negotiations are largely considered to be a ‘stalemate’ and seem to have little bearing on the currency.

What’s next?

All eyes are on the Bank of England, as Carney and his team deliberate on a rate hike for the first time in more than a decade. 

USD: Greenback on a roller coaster ride

Month in Review

The US dollar has been through a choppy month in October, following a series of mixed results in data. The CPI & Labour market delivered disappointing outcomes, while average hourly earnings and GDP exceeded expectations. USD/SGD briefly hit a low of 1.348 and a high of 1.37, before closing at 1.364 in the last week of October.

What’s next?

Uncertainty continues to plague the greenback, as incumbent Janet Yellen’s ending tenure signals the appointment of a new Federal Chairman is left in the hands of President Trump. The market continues to monitor closely, as the House approved a USD 4 trillion budget – paving the way for President Trump’s tax reform.

EUR: Bears in control amidst ECB taper & Catalan woes

Month in review

The Euro weakened in the last week of October, as the ECB executed its tapering plans; though this will possibly extend the asset purchase program. In a dramatic turn of events, the Catalan leaders declared independence, and a pro-Spain rally took to streets, inviting more scrutiny to the events-driven Eurozone market.

What’s next?

The Euro bulls are likely to face resistance in the coming weeks, as more events unfold. The market will continue to monitor European politics as a forward guidance.

AUD: Aussie in the doldrums

Month in Review

The Aussie dollar took a significant hit after a month of disappointing retail sales, CPI & inflation data. AUD/SGD dipped in the final week of October, following news that Australian Deputy Prime Minister Barnaby Joyce has been ruled ineligible to stand for parliament by the High Court of Australia, as the dual-citizenship scandal continues to plague the Australian government.

What’s next?

The RBA will be releasing its statement on monetary policy on 7th November and this is likely to have an impact on the AUD.

Kind regards,

Singapore Dealing Team

 

 

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 upon 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. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

 

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