Currency Market Analysis

Apr 07, 2021 | Currency Market Analysis

Global Themes

USDSGD falls as greenback extends reversal lower

The USDSGD fell overnight as the greenback extended its run of big losses to a second day.

The USD, the dominant currency in the first quarter of 2021, has reversed suddenly lower as US bond yields drifted this week.

The USD buying culminated with last week’s announcement of President Joe Biden’s USD2 trillion infrastructure payments.

USDSGD lower

The USDSGD fell 0.2%.

The USD’s main losses were versus other major currencies, so the SGD underperformed in other markets.

The EURSGD gained 0.4% while the JPYSGD was up 0.2%.

Fed in focus

Today’s early release comes from the NZ commodity price index due at 9.00am.

Later, European PMI numbers will see a final read after last week’s better numbers.

The US Federal Reserve minutes, due at 2.00am, will be key in an environment of a recently weakening US dollar.

If the Fed continues to signal it has no concern with rising inflation, and plans to keep rates lows, the USDSGD might slip further.

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