Global Forex Market

Global Forex Market

The dollar surged by 1.14% to 98.496 largely underpinned by stronger economic data, signalling that the US economy remains resilient despite concerns over slower global growth.

Data released this week includes: the ISM January manufacturing index that climbed to 50.9 points from 47.8 in December (cons: 48.5 points); (2) December factory orders at 1.8% m/m from -1.2% m/m in November (cons: +1.2% m/m); and January ISM non-manufacturing PMI came in better than expected, expanding to 55.5 from 54.9 in December (cons: 55), marking the strongest expansion since August 2019.



The dollar received additional impetus towards the end of the week following the announcement of the Chinese government to lower tariffs on US imported products worth of US$75bil. Separately, President Trump was acquitted by Senate in his impeachment trial.

Oil prices saw Brent crude plummet 5.55% to US$54.93/bbl. Mid-week, the commodity plunge to its one-year low owing to the rising fears of lower crude demand by world’s biggest importer, China, amid the coronavirus outbreak. However, the downside was mitigated following news on Opec+ considering further output cuts to compensate for a drop in demand caused by the coronavirus.