USD/SGD holds firm as markets assess robust US data, markets delay cuts


  • USD/SGD rose to 1.3515 and managed to clear all of its daily losses.
  • The US saw an uptick in manufacturing and services PMI data which bolstered the Dollar.
  • Strong Jobless Claims figures are also painting a resilient US economy which justifies the delay of rate cuts by the Fed.

The USD/SGD recovered from daily lows, and ahead of the Asian session is trading with slight gains. The pair's movements have been influenced primarily by the cautious posture of the Federal Open Market Committee (FOMC) seen in Wednesday’s minutes, and the strong US Manufacturing and Services PMI figures. Strong Unemployment data released during the European session contributed to the recovery.

While the US Federal Reserve maintains its cautious approach towards monetary easing, strong manufacturing and service sector data seem to justify the bank’s stance. May's S&P Global Manufacturing PMI surpassed market expectations, increasing to 50.9 compared to April's figure of 50.0. Furthermore, a robust increase was also seen in the services PMI, which accelerated to 54.8 from 51.3, undermining market expectations. Additionally, the US Department of Labor reported a rise in Jobless Claims, which was below the expected estimates, suggesting that the labor market remains strong.

The strong economic figures fueled a rise in US Treasury yields which seems to be signalling that markets are delaying the start of the easing cycle. This is corroborated by the CME FedWatch Tool which indicated that the odds of a cut in September declined just below 40%. Next week, the US will release April’s Personal Consumption Expenditures (PCE) data which will provide additional insights into the US economy..

USD/SGD technical analysis

Within the daily overview, the Relative Strength Index (RSI) is treading in negative territory, inclining slightly towards a neutral trend while oscillating around the 50 mark. However, a recovery was seen after bottoming at 44 which may imply that the buyers are gaining ground. The decreasing red bars of the Moving Average Convergence Divergence (MACD) histogram reveals a decreasing selling momentum, providing a signal that the bear's time might be over.

USD/SGD daily chart

USD/SGD

Overview
Today last price 1.3518
Today Daily Change 0.0010
Today Daily Change % 0.07
Today daily open 1.3508
 
Trends
Daily SMA20 1.3534
Daily SMA50 1.352
Daily SMA100 1.3461
Daily SMA200 1.3493
 
Levels
Previous Daily High 1.3514
Previous Daily Low 1.3459
Previous Weekly High 1.356
Previous Weekly Low 1.342
Previous Monthly High 1.369
Previous Monthly Low 1.3438
Daily Fibonacci 38.2% 1.3493
Daily Fibonacci 61.8% 1.348
Daily Pivot Point S1 1.3473
Daily Pivot Point S2 1.3438
Daily Pivot Point S3 1.3418
Daily Pivot Point R1 1.3528
Daily Pivot Point R2 1.3549
Daily Pivot Point R3 1.3583

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

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.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

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.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

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.

Gold News
Geopolitics back on the radar

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.

Read more
Eurozone PMI sounds the alarm about growth once more

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.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures