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Currency Market Analysis

Feb 05, 2018 | Currency Market Analysis

Global Themes

USDSGD at two-week highs as US jobs, wages, jump

The USDSGD jumped to the highest level in two weeks on Friday after a strong US employment report sent US sharemarkets sharply lower and US bond yields sharply higher.

The US jobs report for January saw 200k new jobs created but, more importantly, wages grew by 0.3% over the month. A pick-up in wages is likely to drive inflation in the United States.

The news pushed US bond yields to new highs as markets looked ahead to further rate hikes from the US Federal Reserve.

Hammered

The USDSGD climbed 0.9% in its largest one-day gain in over a year.

The Singapore dollar was weaker in all other major markets with the EURSGD up 0.5% and the JPYSGD up 0.3%.

However, the commodity currencies were weaker, with the AUDSGD down 0.5%.

RBA

Today’s key economic release is the Chinese Caixin manufacturing gauge at 9.45am.

From overseas, the week’s focus will be on Tuesday’s Reserve Bank of Australia meeting, Thursday’s Bank of England meeting and Friday’s Chinese inflation.


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