Currency Market Analysis

Oct 11, 2021 | Currency Market Analysis

Global Themes

US jobs miss, but Fed still in focus

The US non-farm employment report missed expectations for the second month running on Friday but it didn’t upset expectations that the US Federal Reserve will begin to taper its money-printing program next month.

US jobs were reported at 194k – well below the 500k expected – but with participation rates still low and wages higher, the report painted a picture of a hot labour market that could drive inflation higher.

The unemployment rate fell sharply from 5.2% to 4.8%.


The Singapore dollar outperformed.

The USDSGD fell further after recently reversing near one-year highs.

The euro fell to new lows as rising US bond yielding pressured the EURUSD pair.

The Japanese yen was also lower with the USDJPY nearing three-year highs.

The NZD continued to weaken as expectations for future rate increases from the Reserve Bank of New Zealand continued to ease after last week’s decision to lift NZ rates.

Key data due

This week sees a series of major international data.

From the US, inflation on Tuesday, Federal Reserve minutes on Thursday and retail sales on Friday are the highlights.

Otherwise, German ZEW confidence on Tuesday and Australian employment on Thursday are the other major events.

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