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Currency Market Analysis

Oct 19, 2017 | Currency Market Analysis

Global Themes

USD boosted as bond yields climb

The USDSGD was stronger overnight as US bond yields continued to rise.

For example, the US two-year bond yields have climbed from 1.21% to 1.56% in the last six weeks – an increase of 35%.

Higher US bond yields boosted the US dollar in early trade but a late reversal, driven by a weaker than expected series of numbers from the housing market, hit the greenback.

The USDSGD ended up 0.1%.

SGD mixed

The SGD was mixed in other markets.

The euro climbed 0.3% versus the SGD while the British pound climbed 0.1%.

The SGD saw better gains versus the Japanese yen – up 0.6% – while the local currency was also higher versus the Swiss franc.

The AUD was stronger after this morning’s better jobs numbers.

China in focus

Later today, Chinese GDP will be released. With the critical 19th Party Congress currently taking place in Beijing, a disappointing number is unlikely.

From the US, we have the Philly Fed and unemployment claims tonight.

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