Wages Weigh in on Potential Rate Cut 

US employment data due tonight

With hints from the Fed that it could ease monetary policy in the near future, the Greenback has been under pressure, leading the SGD dollar to take advantage, gaining 0.75% this week. It’s still not all roses, as domestic economic conditions remain soft, with the country being heavily dependent on its export sector and this week’s commodity releases would have raised concerns. The employment data for US is to be released tonight at 8.30pm (GMT +8:00). Unemployment rate is expected to remain unchanged at 3.6%, and nonfarm job creation is expected to increase by 180k (versus 263k last month).

Final day for May

Theresa May will today step down as Prime Minister, after failing to get Parliament and many in her own cabinet to back her broken Brexit deal. Now for those outside the Westminster loop, today is pretty arbitrary – not a lot is going to change. May is only stepping down as Tory leader for now, meaning she will remain in Downing Street as prime minister until the end of July when her replacement has been chosen. Sterling dips further and GBP/SGD interbank rate is currently at 1.73 level.

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