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Currency Market Analysis

Apr 24, 2018 | Currency Market Analysis

Global Themes

USDSGD jumps to two-month highs after strong data

The USDSGD climbed to the highest level in two months overnight as the US dollar’s recent comeback continued.

The US dollar has been boosted by a sharp rise in market interest rates with US bond yields leaping to multi-year highs.

Overnight, the benchmark US ten-year bond year neared 3.00% — widely seen as a major technical level. A move above this level could drive further USD gains.

Mixed messages

The moves saw the USDSGD climb 0.8%.

The USDSGD is now up 1.4% since last Thursday.

The SGD was mixed in other markets as the USD’s rally pressured other key currencies.

The EURSGD was up 0.1% while the JPYSGD fell 0.3% as it neared two-month lows.

Australian CPI

Today, Australian first-quarter inflation numbers will be the major release, due at 9.30am.

The market is looking for a headline result of 2.0% in annual terms with the RBA’s favoured measure – the trimmed mean – forecast at 1.8%.

A weaker result could pressure the AUD to new lows.

Across the region, inflation numbers will remain in focus. In Japan, annual inflation to 31 March will be released at 1.00pm.

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