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Currency Market Analysis

Aug 06, 2020 | Currency Market Analysis

Global Themes

USDSGD at six-month lows as ADP jobs miss

The US dollar took another step lower overnight after the ADP payrolls number, often seen as a guide to tomorrow night’s all-important non-farm employment report, sharply missed expectations.

The ADP jobs report found 167k new jobs were generated in July – well below the 1.2m expected.

The USDSGD fell 0.3% as it fell to the lowest level since 3 February.

Euro extends gains

The global rally in commodities – partly sparked by a weaker US dollar – continued overnight.

Gold, up 5.2% over the last week, and iron ore, up 7.6% over the last week, have been the standout performers as a weaker greenback boosted the price of USD-denominated assets.

The euro continued to benefit from the US dollar weakness. The EURSGD gained 0.3% as it returned to two-year highs.

The Japanese yen saw small losses while the British pound saw small gains.

BoE due

The Bank of England is in focus with their monthly policy decision due tonight.

With UK rates at 0.10%, no change is expected. This might provide a further boost for the strengthening GBP.

Also tonight, US weekly unemployment claims will be closely watched, with US data turning lower since a resurgences in COVID-19 in mid-June.


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