Currency Briefing - what you need to know for Fri May 4, 2012

The local currency fell back above the $1.24 threshold, trading at $1.2438.

IG Markets Singapore said:

The Singapore dollar ends the week edging lower against the greenback falling back above the $1.24 threshold.

After a buoyant start to the week a series of disappointing economic data has shifted traders back into risk off mode with Asian currencies caught in the crossfire.

Last night, US services sector growth came in weaker-than-expected which had investors running back to safe haven assets and currencies like the US dollar. Investors are also concerned about the eurozone which has dampened appetites for Asian currencies.

Tonight we have a clearer picture on US employment growth with non-farm payrolls data. But these are not expected to snap the slew of poor economic data being released by the world’s largest economy.

The local currency is trading at $1.2438 this morning.

GFT meanwhile noted:

Thanks to the European Central Bank, the euro ended the day higher against the U.S. dollar.

Despite a mixed bond auction for Spain that required the nation paying significantly higher yields on their bonds and lower producer price growth in the Eurozone, the ECB is not worried enough to show it.

As expected, the central bank left interest rates unchanged at 1.00 percent but ECB President Draghi saved the euro from further losses by making no mention of the recent downturn in economic data and the possibility of a rate cut in June.