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Currency Market Analysis

Jul 24, 2018 | Currency Market Analysis

Global Themes

USD, JPY jump as global yields climb higher

The USDSGD jumped from two-week lows yesterday as a step higher in Japanese bond yields saw market interest rates in other major economics also rise.

Japanese bond yields rose on media speculation that the Bank of Japan might begin to ease its massive money-printing operation when it meets next week.

The Japanese ten-year bond yield jumped to 0.09% – the highest level in six months – while the US ten-year bond yields climbed to 2.96% – a six-week high.

Higher

The USDSGD climbed 0.2% as it rebounded from two-week lows.

The EURSGD was up 0.1% while the GBPSGD was steady.

The JPYSGD climbed 0.3% as Japanese bond yields jumped.

Manufacturing in focus

Today’s focus will be on key manufacturing activity numbers from across the globe.

Japanese manufacturing PMI is due at 8.30am, with German numbers due at 3.30pm and US numbers due at 9.45pm.

Tomorrow, the all-important Australian inflation numbers will be the biggest local release for the month. A weaker number has the potential to push the AUDSGD below the critical two-year lows.


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