USD/SGD has posted considerable gains on Wednesday, as the pair trades at 1.3650 in the European session. In economic news, the Singapore Consumer Price Index posted a decline of 0.8%. In the US, today’s major event is New Home Sales. We’ll also get a look at the weekly Crude Oil Inventories.
Singapore CPI, the primary gauge of consumer inflation, continues to struggle. The index posted a weak reading of -0.8%, compared to -0.6% in the previous release. The Singapore economy has taken a hit from the Chinese slowdown, as the Asian giant is a major export market for Singapore. In December, a Monetary Authority of Singapore survey projected growth in 2016 of 2.2 percent. However, a poll conducted by economists, which was released last week, downgraded that estimate to 1.9 percent.
The US manufacturing sector has struggled, hurt by the global slowdown which has meant less demand for US-produced goods. Recent manufacturing readings have reflected a sector in deep trouble, so the markets were surprised as the Richmond Manufacturing Index surged in March. The indicator, which measures activity in the US Atlantic region, jumped to 22 points, its highest level since June 2010. We’ll get a look at additional manufacturing indicators on Thursday, with the release of US durable good reports.
What does the Federal Reserve have planned? Last week’s policy statement appeared to pour cold water on any imminent rate hikes, but “not so fast”, according to two Federal Reserve officials. On Monday, John Williams, president of the San Francisco Fed, said that the Fed could raise rates in April and June, if economic conditions improve. Although the dot plot (an FOMC projection of rate hikes) was lowered at the March meeting, he insisted that the Fed had not changed its path of rate hikes. His comments were echoed by Atlanta Fed Dennis Lockhart, who also said that an April rate move was a clear possibility. Lockhart noted that the US economy was holding up well, despite weak global conditions. Lockart said that the economy was close to full employment and the Fed’s target of 2 percent inflation was attainable. However, it should be kept in mind that neither Willams nor Lockhart is a voting member of the FOMC. On Tuesday, St. Louis Federal President James Bullard said that with the US unemployment rate at very low levels, the Fed could be forced to raise rates sooner rather than later.
Wednesday (March 23)
- 00:00 Singapore Consumer Price Index. Actual -0.8%
- 9:00 US FOMC Member James Bullard Speaks
- 10:00 US New Home Sales. Estimate 512K
- 10:30 US Crude Oil Inventories. Estimate 2.5M
Thursday (March 23)
- 13:30 US Core Durable Goods Orders. Estimate -0.2%
- 13:30 US Unemployment Claims. Estimate 267K
*Key events are in bold
*All release times are DST
USD/SGD for Wednesday, March 23, 2016
USD/SGD March 23 at 7:20 DST
Open: 1.3603 Low: 1.3587 High: 1.3682 Close: 1.3656
- 1.3639 has switched to support following gains by USD/SGD on Wednesday. It is a weak line
- There is resistance at 1.3721
- Current range: 1.3639 to 1.3721
Further levels in both directions:
- Below: 1.3639, 1.3535, 1.3401 and 1.3279
- Above: 1.3721, 1.3810 and 1.3939
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