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Currency Market Analysis

Oct 17, 2019 | Currency Market Analysis

Global Themes

USDSGD jumps from one-month lows on Fed cut hopes

The USD dollar was higher versus most currencies overnight as weaker US jobs data sparked a big rally in US shares.

The US dollar was helped by the gains in US equities markets.

A sharp drop in the ADP jobs number, which came in at 27k new jobs versus the 185k expected, sparked hopes for a Federal Reserve rate cut with the bond market forecasting a cut by the Fed’s September meeting.

GDP slump

The greenback’s recovery saw the AUD fall from one-month highs with the pair down 0.2%.

The Aussie was lower after a weaker first-quarter GDP reading that saw local growth, at 1.8% in annual terms, near the lowest levels in five years.

The British pound was stronger as it continued to recover from four-month lows.

ECB

The European Central Bank meets at 7.45pm.

With most major central banks signalling they will take action to reduce the impact of global trade concerns, a more supportive statement, that suggests the ECB might need to cut interest rates, could weaken the EUR.


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