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Currency Market Analysis

Jun 05, 2017 | Currency Market Analysis

Global Themes

US dollar hits October lows after jobs, but Fed hike still on

The USDSGD hit the lowest level since 14 October after the US non-farm payrolls came in below expectations and sent the US dollar lower.

The US created 138k new jobs in May, below the 180k expected. However, the unemployment rate fell to a 16-year low of 4.3%.

Markets remain convinced the US Federal Reserve will raise rates when they meet next week.

The market pricing for a Fed rate hike on 15 June climbed to 93% from 85% last week.

Eight-month lows

The USDSGD fell 0.4% as it hit the lowest level in eight months.

Other currencies climbed versus the SGD.

The euro was up 0.2% as it returned to six-month highs.

The Japanese yen was 0.4% stronger as neared two-week highs.

PMI data

Today’s data include key activity releases including the Chinese services PMI.

PMI numbers from Europe and US will also be released today.

US labour data is also due with productivity and labour costs to be released at 8.30pm.

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