Currency Market Analysis

Apr 02, 2020 | Currency Market Analysis

Global Themes

Greenback higher as US shares see worst session in two weeks

The USD was mostly stronger overnight as the selling returned to US shares with the benchmark Dow Jones seeing its worst day in two weeks.

US shares have recently been supported by the positive

reception to the US government’s massive stimulus program.

However, markets have turned more cautious ahead of two major employment reports.

The Dow fell 4.4%.

Tonight’s US weekly unemployment claims report is expected to see 3.5 million new claims – its worst result ever.

The USDSGD climbed in line with selling in equity markets.

The USDSGD gained 1.0%.

The SGD’s largest loss was in the highly sensitive Japanese yen market with the JPYSGD up 1.4%.

The EURSGD gained 0.4% while the CHFSGD climbed 0.5%.

Jobless claims key

Tonight’s focus will clearly be on the US weekly unemployment claims.

Last week’s reading, a jump from 280k to 3.3m, was the biggest jump in history, and tonight’s 3.5m forecast looks to set another sombre record.

Tomorrow, the all-important US non-farm employment result could also produce a poor result for markets, with market forecasts looking for 100k jobs to be lost.

Last night’s ADP jobs report, sometimes seen as a guide to the jobs report, was slightly better than expectations.

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