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Currency Market Analysis

Jul 05, 2021 | Currency Market Analysis

Global Themes

USDSGD reverses lower despite bumper US jobs number

The USD was sharply lower on Friday despite a much stronger result from the US non-farm employment number.

The US economy added 850k new jobs in June – well above the 725k expected – in another sign of the US’s ongoing recovery.

However, a rise in the unemployment rate, from 5.8% to 5.9%, and, more importantly, wages growth that was in line with forecasts, caused inflation fears to ease.

The USD index fell from three-month highs.

Highs hit sentiment

The USDSGD reversed sharply at the four-month highs.

The greenback weakness saw the euro and Japanese yen both climb from recent lows.

The AUDSGD jumped higher after the Australian dollar touched 2021 lows earlier in Friday’s session.

Central banks key

Central banks remain in focus this week.

The Reserve Bank of Australia meet tomorrow for a decision that could drive the Australian dollar.

According to a Bloomberg report published over the weekend, most forecasters expect the RBA to wind back parts of its stimulus program in a move that could provide support for the AUD.

The Federal Reserve minutes are due Thursday morning while Bank of England governor Andrew Bailey speaks on Friday.

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