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Currency Market Analysis

Mar 19, 2018 | Currency Market Analysis

Global Themes

USDSGD jumps to one-week highs lows as Fed looms

The USDSGD jumped to one-week highs on Friday as rising US bond yields signalled growing nerves ahead of the US Federal Reserve meeting on Thursday morning.

US bond yields jumped on Friday as market focus shifted from worries about a potential trade war to worries about the impact of this week’s Fed decision.

The USDSGD climbed 0.3% on Friday.

SGD lower

The SGD was lower in most other markets.

The SGD’s biggest losses were against the low-yielding currencies in a sign of growing market nervousness.

The euro was up 0.2%, Swiss franc climbed 0.3% while the JPYSGD was up 0.7%.

Fed focus this week

Financial markets have a busy calendar this week with the US Federal Reserve, due 2.00am Thursday, clearly the major event.

While a rate hike is seen as a certainty, the focus will be on the Fed’s updated forecasts.

Any sign the Fed expects four rates hikes in 2018 could see the USD sharply higher.

Otherwise, the Reserve Bank of Australia minutes, due Tuesday, Australian employment and Bank of England, also due Thursday, and US durable goods on Friday will be the week’s major events.

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