Currency Market Analysis

May 03, 2019 | Currency Market Analysis

Global Themes

USDSGD closes as best level since Jan ahead of US jobs

The USDSGD finished at the highest closing level since 3 January overnight as the greenback climbed.

The Fed’s more confident statement is behind the move with yesterday’s Federal Reserve meeting boosting the USD.

The Fed signalled it has no plans to cut rates and said it views recent inflation weakness as only “transitory”.

UK hikes ahead?

The main focus overnight came from the UK after the Bank of England kept interest rates on hold.

BoE governor Mark Carney said the bank is likely to raise rates when --- and if – Brexit is resolved. The UK is one of the few countries with inflation close to target.

US jobs critical

The focus tonight is on the US jobs report due at 8.30pm.

US jobs have been strong recently with the ADP measure this week seen at 275k versus 181k. The ADP measure, a private sector reading, as beaten in three of the last five releases.

In terms of the official non-farm payrolls due tonight, this reading has beaten in three of the last four reports, so the trend remains strong.

The market is looing for 185k new jobs.

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