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Currency Market Analysis

Jul 16, 2020 | Currency Market Analysis

Global Themes

USDSGD nears one-month lows ahead of China GDP

The USDSGD neared one-month lows overnight as US shares climbed on better earnings numbers and renewed hopes for a COVID-19 vaccine.

The all-important US June-quarter reporting season has kicked-off this week with last night’s better upbeat results from Goldman Sachs boosting sentiment.

Additionally, reports that biotechnology firm Moderna had received positive results in a COVID-19 test also helped markets higher.

Euro slips

The USDSGD fell 0.2% as it neared one-month lows.

The euro eased from three-month highs.

The Japanese yen was moderately higher after yesterday’s Bank of Japan meeting.

China GDP

The early release today comes from Australian employment with forecasts looking for 113k new jobs.

However, there is a wide range in forecasts, with the highest forecast at 350k from Barclays, while the lowest is looking for a fall of 30k from St George (source: Reuters, 16 July 2020).

At 10am, Chinese June-quarter GDP is due, with the markets expecting a big jump of almost 10% over the quarter after the March-quarter number fell 9.8%.

Later, the European Central Bank meets, while US retail sales is also due.

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