Currency Market Analysis

Apr 06, 2020 | Currency Market Analysis

Global Themes

Greenback stronger despite US shock on jobs

The US dollar was stronger over the weekend even after Friday night’s US non-farm payrolls reported a massive 700k fall in employment.

US shares dropped on the news, with the Dow Jones down 1.7%, and the Australian dollar fell in sympathy.

The market forecast had expected only 100k jobs to be lost in another sign of the worsening environment for the US economy.

The US unemployment rate jumped from 3.8% to 4.4%.

SGD weaker

The Singapore dollar, closely tied to expectations to for global growth, is highly sensitive to moves in global sharemarkets.

The USDSGD climbed 0.6%.

The SGD was weaker in most other markets with the EURSGD up 0.1% and the JPYSGD also up 0.1%.

Jobs key for economy

The ongoing spread of the coronavirus outbreak remains the key driver of equity and FX markets.

In terms of data, today’s early focus is on the Australian job markets.

The ANZ job advertisement series will be closely watched with shifts in the employment market critical to the impact on the real-world economy.

Later in the week, the Reserve Bank of Australia, ECB minutes and US CPI are seen as the major releases.

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