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Currency Market Analysis

Nov 01, 2019 | Currency Market Analysis

Global Themes

USDSGD hits three-month lows as China warns on trade

The US dollar remained pressured overnight after a sudden shift in rhetoric from the Chinese government unsettled markets.

A report from Bloomberg said the Chinese government doubts whether a long-term trade deal can be agreed between the US and China.

The report also said President Trump’s “impulsive nature” and risk he may back away from the current deal remains a concern for the Chinese government.

Markets hit

The news sent US shares lower. The Dow Jones fell 0.5%.

The USDSGD fell 0.3% as it hit the lowest level since July.

The Japanese yen jumped higher as markets moved back into the safe havens.

The euro and British pound both gained.

US jobs

Today’s focus shifts back to the US with the all-important monthly employment report due at 8.30pm.

The market is looking for only 90k new jobs – a steep fall from the 180k average from earlier this year.

Overnight, a series of poor US economic reports signalled the slowing nature of US activity.

Personal consumption, wage growth and Chicago manufacturing activity all missed expectations.

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