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Currency Market Analysis

Feb 17, 2021 | Currency Market Analysis

Global Themes

Bond yield leap sees USDSGD reverse higher

The USDSGD reversed near the major three-year lows overnight after the US dollar staged a bond-inspired comeback.

Key US bond yields leapt to a one-year high, with the benchmark 10-year yield up 12 basis points to 1.31%.

A stronger manufacturing read, and upbeat economic assessment from Federal Reserve governor James Bullard, US bond yields.

USD jumps

The USDSGD jumped 0.4%.

The Japanese yen extended recent losses with the JPYSGD falling to the lowest level in almost a year.

The euro and British pound were both higher.

US Fed key

Today’s focus is on a Reserve Bank of Australia speech at 9.00am (AEDT).

Yesterday, the RBA noted, in its minutes from the 2 February meeting, that low interest rates and its quantitative easing program “would be required for some time.”

The RBA also noted that its recent moves has “contributed to the Australian dollar being noticeably lower than it would have been otherwise.”

Tonight, US retail sales and the Federal Reserve minutes are both due, with particular focus on the impact on US bond yields.

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