SMATS FX is proud to provide our weekly analysis of currency markets and exchange rates.
|
USD |
The US Dollar struggled last week against most major currencies following the 50 basis-point cut from the Federal Reserve last week. Analysts expect the USD to continue to weaken now that it has less of an interest rate advantage over its competitors. The Fed also announced that the door remains open for more easing in the months to come. Without any major data point due this week, the USD will take cues from movements in other currencies and the spread of the Coronavirus inside the States. Influences on HKD, SGD & AED Our exotic currencies took a few hits last week on the back of the Federal Reserve’s aggressive 50-basis point rate cut. In the absence of any real data, the HKD, SGD and AED will be taking cues from global trade sentiment as well as keeping in tune with the US Dollar. |
|
AUD |
The Aussie Dollar will be relying on domestic data to prop up the local currency as Coronavirus weighs down on the comdoll. The NAB business sentiment is due out on Tuesday and we can expect a drop of 1 index point from -1 to -2. It is important to note that just before the release of the NAB business sentiment, China will be releasing their CPI report which should impact the AUD. |
|
NZD |
The Kiwi Dollar struggled during the Asian session on Monday and the NZD will be at the mercy of global trade sentiment in a light data week. On Tuesday Governor Adrian Orr will be giving a speech in Wellington, market traders should keep their ears to the ground for any clues or comments regarding the potential rate cuts. Coronavirus concerns will continue to have a large impact in the markets, and it could continue to negatively impact the Kiwi Dollar. |
|
EUR |
The Euro was able to benefit from risk-off flows last week, this week the main driver for the single European currency will be the European Central Bank’s monetary policy decision. We don’t expect any changes to the actual interest rate, but pressure has mounted onto central banks across the globe following the Federal Reserve’s 50 basis-point cut last week. The ECB will be making their decision on Thursday. Germany released their balance of trade data for January early in Monday’s London trading session, the headline figure beat expectations and came in at €13.9 B. |
|
GBP |
A fast start to the week for the British Pound soar against most currencies, the GBP/ZAR reached 22.18, while the GBP/AUD broke the 2.0 barrier. This week the UK will be releasing their monthly GDP data on Wednesday, we can expect the growth figure to come in at 0.2% for January. At the same time the manufacturing production will be released, analysts expect an uptick of 0.2% for January in what is considered a leading indicator of economic performance. Most importantly, the first post-Brexit budget comes in the form of Wednesday’s Spring Budget as investors will be looking to see how the government will be supporting the economy as the world grapples with Coronavirus. |
Transfer your money internationally with ease at our special VIP rates at SMATS FX: http://www.smats.net/currency/
