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USD/SGD – Greenback Rally Continues Ahead of US Nonfarm Payrolls

USD/SGD has posted slight gains on Friday, as the pair continues its upward trend for a third straight day. In the European session, the pair is trading just shy of the 1.41 line. The markets are keeping a close watch on US employment data, as Nonfarm Payrolls and the unemployment rate will be released later on Friday.

The markets are anxiously awaiting US Nonfarm Payrolls, which will be released on Friday. NFP is expected to rise sharply to 181 thousand, so the dollar could be a big winner as we wrap up the trading week. However, the markets haven’t forgotten the dismal NFP report in September, which came in at 142 thousand, well short of the estimate of 201 thousand. Will the forecast for the October release be more accurate? Aside from employment numbers acting as an important gauge of the US economy, these releases have added significance, since strong job numbers will increase the likelihood of a rate hike in December [1]. Conversely, a poor performance will damper expectations of a move by the Fed before 2016. Traders should be prepared for volatility after the Nonfarm Payrolls release.

On Thursday, US unemployment claims disappointed, as the key indicator jumped to 276 thousand, way above the forecast of 263 thousand. This marked a 5-week high. Still, recent jobless claim releases point to close to full employment in the US, and the four-week average of jobless claims, which is less volatile than the weekly release, remains at its lowest level since December 1973. The unemployment rate stands at just 5.1%, and is expected to nudge lower to an even 5.0%.

It was a quiet week out of Singapore, with no economic releases. Next week, Singapore releases Retail Sales and Foreign Reserves, and China, whose key releases can have a strong effect on the Singapore dollar, will publish CPI and Industrial Production. This means that traders will have some cues to work with besides US releases next week, and this could translate into stronger volatility from SGD/USD.

 

USD/SGD Fundamentals

Friday (Nov. 6)

*Key releases are highlighted in bold

* All times are GMT

 

USD/SGD for Friday, November 6, 2015

USD/SGD November 6 at 11:55 GMT

USD/SGD 140.94 H: 140.97 L: 140.54

 

USD/SGD Technical

S3 S2 S1 R1 R2 R3
1.3823 1.3900 1.4073 1.4139 1.4248 1.4300

Further levels in both directions:

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [5]

Market Analyst at OANDA [6]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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