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Currency Market Analysis

Jul 02, 2021 | Currency Market Analysis

Global Themes

USDSGD at four-month highs as US jobs loom

The USDSGD hit four-month highs overnight as the greenback extended gains ahead of tonight’s critical US jobs report.

Overnight, US weekly unemployment claims fell to their lowest levels since the pandemic, another strong reading on US employment after Wednesday night’s expectation-beating ADP jobs numbers.

The news boosted the greenback with the USD index climbing to three-month highs.

USD stronger

The USDSGD gained 0.5% as it neared major resistance at the eight-month highs.

With the USD stronger, the euro, British pound and Japanese yen both fell.

The Australian dollar unperformed as it fell to seven-month lows.

Earnings focus

The US jobs report, due at 8.30pm, will clearly be today’s major event.

The market is looking for a massive 725k after the series missed expectations in the last two reports.

However, the major focus will be on average hourly earnings, which have recently sharply beaten expectations.

A higher number could drive further concerns about inflation and boost the US dollar over the Fourth of July long weekend.


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