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Currency Market Analysis

Mar 12, 2018 | Currency Market Analysis

Global Themes

Markets boosted by “Goldilocks” US jobs report

Key financial markets around the world were boosted higher on Friday after US employment growth was reported strongly above forecasts.

The February non-farm payrolls saw an increase of 313k new jobs – the best result in over three years – but with few signs of wage inflation.

The report signals strong employment growth but eases concerns the US Federal Reserve might need to increase the pace of interest rate hikes – a so-called “Goldilocks” result.

Markets lift SGD

US sharemarkets were lifted by the result with the US’s Dow Jones index up 1.8%.

The US jobs news saw the USD weaken with the USDSGD losing 0.2%.

The SGD was mostly higher.

The EURSGD lost 0.3% while the JPYSGD fell to one-week lows.

US budget

This week will start with the US Federal budget balance released at 2.00am.

The greenback’s lack of strength despite higher US interest rates has recently confounded analysts with some blaming the US dollar’s weakness on growing budget deficits.

Later this week, Chinese industrial production numbers will be closely watched.

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