SMATS FX is proud to provide our weekly analysis of currency markets and exchange rates.
|
USD |
US Dollar traders are in a bearish mood following negative economic updates and continued hopes of stimulus. As Biden slowly announces his administration the USD continues to be unpredictable, the jobs data came out worse than expected last week, the non-farm productivity for the 3rd quarter is expected to climb by 5% when it is released on Tuesday. On Thursday, the inflation rate is expected to increase by 1.2% YoY. Influences on HKD, SGD & AED A week short of data for our exotic currencies mean that the US Dollar is going to be the driving force once more with COVID-19 vaccine news and local COVID numbers should drive the pairs. Market watchers should trade with caution this week as the vaccine roll outs and updates should cause the markets to remain volatile. |
|
AUD |
Improving GDP and retail sales data seemed to lift the Aussie Dollar last week, but counter currency flows saw the AUD fall in the first half of the week. Developing trade tensions with China has resulted in a shaky Australian Dollar in the last couple of weeks, market traders should keep an eye out for any developments as Australia rumbles with their biggest trading partner. China are set to drop a load of data this week which is expected to have an impact on the Aussie Dollar’s strength, trade surplus on Monday along with the imports and exports and consumer and producer prices are due out on Wednesday. |
|
NZD |
A turn in risk sentiment saw the NZD tumble last week despite their positive trading updates. Another week short of data should see the Kiwi Dollar take cues from counter currency action and general risk sentiment. With the New Zealand Dollar gaining over the last few weeks, the NZD could be vulnerable to some profit taking. Chinese data is expected to have an impact on the Kiwi Dollar due to the close trade ties so market traders should keep their eyes out for any results that miss their forecasts. |
|
EUR |
The Euro benefitted greatly from counter-currency flows and upbeat business sentiment data out of the larger European countries last week. It could be an exciting week for the Euro as we fast approach deadline day for Brexit and the European Central Bank will be announcing its policy decision. The press conference will be happening on Thursday at 14:30 GMT, we don’t expect any changes to the interest rate but there could be an expansion of the Pandemic Emergency Purchase Program, the stimulus is expected to be bullish as the economy needs the boost. Increased optimism on the developments of the vaccine could keep risk appetite in play. |
|
GBP |
The British Pound had mixed results but arguably ended in the green as sentiment on a Brexit deal seemed to be more optimism that a deal would be secured than not. Brexit talks will be the main driver for the Pound this week in the absence of any major catalysts. It seems like Brexit negotiations have soured over the week, but it does not seem impossible for a deal could be struck at the last minute. |
Transfer your money internationally with ease at our special VIP rates at SMATS FX: http://www.smats.net/currency/
