Currency Market Analysis

Jun 04, 2018 | Currency Market Analysis

Global Themes

USDSGD at three-week lows despite strong jobs data

The USDSGD remains near lows despite a very strong result from the US jobs report.

The US’s May non-farm payrolls report saw 223k new jobs created, well above expectations for 190k, with wages growth above forecasts while the unemployment rate – at 3.8% – fell to the lowest level since December 2000.

The news boosted markets across the world with the US’s Dow Jones index up 0.9%.

Greenback, yen weaken

The US dollar fell after the jobs news as markets focused on more economically sensitise currencies.

The Japanese yen weakened, also pressured by the better economic data, with the JPYSGD down 0.6%.

The euro fell from one-week highs as it eased after last week’s strong rally.

The British pound was higher after a strong result from a UK manufacturing gauge.

GDP in focus

Australian data will dominate markets this week with the all-important March-quarter economic growth numbers – GDP – due on Wednesday.

The Reserve Bank of Australia also meets tomorrow.

From overseas, the European Central Bank president Mario Draghi speaks tomorrow night, while the US services PMI, which measures economic activity, is due Wednesday night.


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