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Currency Market Analysis

Apr 16, 2020 | Currency Market Analysis

Global Themes

USD jumps as bad data spooks markets

The greenback was sharply higher as a series of poor data releases overnight spooked markets.

Last night’s US data was downbeat with the overnight release from US retail sales down 8.7% versus expectations to an 8.0% fall.

This was the largest drop on record.

US industrial production fell 5.3% (versus expectations of 4.1%) while the NAHB housing index plunged from 56 points to 30 points.

Broad selling

The USDSGD jumped 0.7%.

The SGD was also hit by broad selling across global equity markets.

The SGD fell versus the euro and Japanese yen.

Jobs data

Today’s major release is Australian employment release due at 9.30am.

Australian employment figures are expected to be the worst in 17 years with forecasts, as reported by Refinitiv, expecting 40,000 jobs to be lost in March.

The unemployment rate is expected to rise to 5.5% from 5.1%.

Later tonight, US weekly unemployment claims are forecast to see another 5.4m jobless.

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