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Currency Market Analysis

Aug 16, 2017 | Currency Market Analysis

Global Themes

USD jumps to one-month highs on US retail results

The USDSGD jumped to one-month highs as the recent run of better US data pressured the local currency lower.

After the very strong US employment result at the start of the month, last night’s retail sales number, which was double expectations with 0.6% growth in July, saw the US dollar jump higher.

US data – apart from ongoing sluggishness in inflation figures – has seen a significant step higher over the last month.

According to Reuters, market pricing for a US Federal Reserve rate hike by the end of the year climbed to 40% overnight.

Mixed messages

The USDSGD jumped to the highest level since 20 July as it climbed 0.3%.

The euro and Japanese yen were both sharply lower as these markets stumbled in the face of a stronger US dollar.

The British pound was also lower after a weaker than expected UK inflation number.

Fed up

The next key release in FX markets will be tonight’s US Federal Reserve minutes at 2.00am.

An optimistic reading of the US economy from the central bank could result in further USD gains.

Also tonight, UK employment is due while US housing data will also be watched.


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