- USD/SGD trades below 1.3700 with 0.20 daily losses.
- Inflation in Singapore came in slightly lower than expected.
- The US Dollar trades soft ahead of high-tier economic figures to be released this week.
The USD/SGD declined in Monday's session, mainly driven by the Greenback trading weak against its rivals amid dovish bets on the Federal Reserve (Fed) and lower US Treasury yields. The SGD managed to hold its foot despite lower-than-expected inflation data released during the Asian session, and the focus shifts to key economic activity figures from the US to be released during the week. The economic calendar had nothing relevant to offer on Monday.
The Consumer Price Index (CPI) from Singapore from September came in at 4.1% YoY, lower than the 4.2% YoY expected but accelerated from its last figure of 4.2% YoY.
On the US side, it trades softs as market speculations lean towards a less aggressive approach by the Federal Reserve (Fed) following Chair Powell's speech last week. In his address, Powell emphasised the need to consider the elevated bond yields and stressed the importance of cautious actions in the next decisions. In that sense, the CME FedWatch tool indicates minimal probabilities, currently at approximately 30%, for a 25 basis points hike in the December meeting, which has led to a decline in interest in the US dollar.
On the data front, the US will release the S&P Manufacturing PMI from October on Tuesday, followed by the Q3 Gross Domestic Product (GDP) on Thursday and the Core Personal Consumption Expenditures from September on Friday.
USD/SGD Levels to watch
Analysing the daily chart, USD/SGD exhibits signs of bullish exhaustion, contributing to a neutral to bearish technical perspective. The Relative Strength Index (RSI) displays a negative slope in the bullish territory, hinting at a potential shift in momentum, while the Moving Average Convergence (MACD) shows flat green bars. However, the pair is above the 100 and 200-day Simple Moving Average (SMA), highlighting the continued dominance of bulls on the broader scale.
Support levels:1.3660, 1.3650, 1.3630.
Resistance levels: 1.3690 (20-day SMA), 1.3740, 1.3770, 1.3800.
USD/SGD Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.