Global Themes

USDSGD could be volatile as Bank of Japan meets

The US dollar was higher overnight – for the first session in seven days – ahead of key announcements from the Bank of Japan and the European Central Bank.

The USDSGD climbed from ten-month lows.

The USDSGD is likely to be driven by today’s Bank of Japan meeting. The Bank of Japan meets today but no change is expected.

The USDSGD often reflects moves in the US dollar – Japanese yen pair. Therefore, we could see greater than usual volatility.

Solid night

The Australian dollar continued to climb higher overnight as markets looked ahead to today’s employment numbers.

Markets are optimistic towards today’s numbers. Five of the last seven months employment results have beaten expectations. This is a sign of an improving economy and could signal the chance for a stronger number today.

The euro weakened as markets turned nervous ahead of tonight’s ECB meeting.

The Japanese yen was stronger as it hit two-week highs.

ECB tonight

The major event tonight is the European Central Bank meeting.

The euro has been recently stronger as market look to the potential end of ECB stimulus.

ECB supremo Mario Draghi sent the euro higher last month after he signalled the central bank is upbeat in European growth. Will the theme continue tonight? If so, the euro could gain.

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