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USD/SGD – Weak Singapore CPI sends Sing Lower

USD/SGD has moved higher on Monday, as the pair trades slightly under the 1.42 line in the North American session. In economic news, Singapore CPI disappointed with a reading of -0.6%. In the US, Manufacturing PMI and Housing Starts both missed their estimates. Manufacturing PMI dipped to 52.6 points, its lowest level since October 2013. Housing Starts dropped sharply to 5.36 million, compared to 5.55 million a month earlier. The estimate stood at 5.39 million.

The Singapore dollar enjoyed a solid week, posting gains of about 130 points. This bucked the recent trend, in which the Sing had posted weekly losses for four consecutive weeks. However, this week has started off on a sour note for the currency, courtesy of a weak CPI reading. CPI, the primary gauge of inflation, posted a decline of 0.6% in October, following the 0.5% decline a month earlier. On Wednesday, Singapore releases GDP, one of the most economic important indicators. The markets are expecting a gain of 0.3% in the third quarter, compared to a small gain of 0.1% in the previous quarter.

The recent Fed policy meeting and subsequent minutes did not confirm a December rate hike, but most analysts feel that the long-awaited move will indeed occur next month. Market [1] expectations have risen to 66% that the Fed will make a move next month [1], and recent comments by Fed policymakers have hinted that a rate move is a strong possibility. At the past two policy meetings, the vote against a rate hike was 9-1, but that clearly will not be the outcome at the December meeting. With the US economy showing improvement and employment and consumer indicators pointing upwards, the markets appear prepared for a small hike of 0.25% or 0.50%, and there is a growing view that a modest move would not cause unwanted turbulence on the global markets [2]. One remaining question mark in the rate move puzzle is that of inflation levels. Recent inflation readings have been weak, and the Fed has repeatedly stated that inflation is a key consideration in any decision to raise rates. The markets will get a look at key inflation indicators shortly before the critical Fed policy meeting on December 16.

USD/SGD Fundamentals

Monday (Nov. 23)

Upcoming Key Releases

Tuesday (Nov. 24)

*Key releases are highlighted in bold

* All times are GMT


USD/SGD for Monday, November 23, 2015

USD/SGD November 23 at 16:15 GMT

USD/SGD 141.86 H: 141.55 L: 140.94


USD/SGD Technical

S3 S2 S1 R1 R2 R3
1.3900 1.4073 1.4139 1.4248 1.4300 1.4395

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 [6]

Market Analyst at OANDA [7]
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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