USD/SGD is showing limited movement on Thursday, as the pair trades slightly below the 1.44 line at the start of the North American session. In economic news, US Unemployment Claims disappointed, rising to 287 thousand. Later on Thursday, Singapore will release Retail Sales, the primary gauge of consumer spending.
The Singapore dollar has endured a rough January, losing 200 points. The risky currency has dropped sharply following recent events in China, with the Chinese stock market meltdown and the devaluation of the Chinese yuan. Geopolitical tensions in Korea, the Persian Gulf and Indonesia have also contributed to significant movement away from minor currencies like the Sing, helping the US dollar continue to climb higher.
The Federal Reserve raised interest rates in December for the first time in nine years, and hinted that this move was the first of a series in 2016. Not surprisingly, this has led to intense market speculation as to when the Fed might strike again. A rate hike in late January is not seen as likely, coming so soon after the December move. Many experts are forecasting another hike in March, contingent on a strong US economy. Although the economy is in good shape, one major area of concern is the inflation picture. Inflation levels have not kept up with other economic indicators and remain at low levels. The minutes of the December meeting indicated that some Fed members strongly considered voting against a rate hike due to weak inflation. Another concern is a lack of wage growth, despite a robust labor market. This was underscored by the last Average Hourly Earnings report, which came in at a flat 0.0% in December. The Fed will be carefully monitoring inflation and wage growth data before deciding to raise rates again early in 2016.
Thursday (Jan. 14)
- 8:30 US Unemployment Claims. Estimate 275K. Actual 281K
- 8:30 US FOMC James Bullard Speaks
- 8:30 US Import Prices. Estimate -1.4%. Actual -1.2%
- 10:30 US Natural Gas Storage. Estimate -152B
- 13:01 US 30-year Bond Auction
Upcoming Key Events
Friday (Jan. 15)
- 00:00 Singapore Retail Sales
- 8:30 US Core Retail Sales. Estimate 0.2%
- 8:30 US PPI. Estimate -0.2%
- 8:30 US Retail Sales. Estimate -0.1%
- 10:00 UoM Consumer Sentiment. Actual 92.7 points
*Key events are in bold
*All release times are EST
USD/SGD for Thursday, January 14, 2016
USD/SGD January 14 at 8:50 GMT
USD/SGD Open: 143.90 Low: 1.4378 High: 143.91 Close: 143.82
- 1.4368 is a weak support line
- 1.4459 is the next resistance line
- Current range: 1.4368 to 1.4459
Further levels in both directions:
- Below: 1.4368, 1.4248 and 1.4139
- Above: 1.4459, 1.4530, and 1.4682
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