Global Themes

USDSGD jumps from lows as greenback stages comeback

The USDSGD climbed from six-month lows overnight as the recent weakening theme continued.

A wobbly US dollar has been the main reason for the USDSGD’s fall but overnight commentary from US Federal Reserve president Patrick Harker saw the USD stage a comeback.

Harker said the Fed can accelerate the speed of rate hikes and said wage pressures could quickly grow with the US unemployment rate at a ten-year low of 4.4%.

The USDSGD climbed 0.4%.

Euro pauses

European currencies were mostly lower despite a very strong series of economic releases last night.

The euro fell 0.1% as it reversed from six-month highs while the British pound was flat for the second consecutive day.

The Japanese yen was also weaker with the currency falling 0.1%.

Coming up

Overnight, the minutes from the most recent Federal Reserve meeting will be released.

While the market continues to expect the US central bank will raise rates at its next meeting, the path beyond is less certain.

The Fed minutes are due at 2.00am.

The Bank of Canada also makes a decision on interest rates tonight.

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