Commerzbank highlights that Singapore’s robust manufacturing and electronics PMIs underpin a constructive growth outlook, with second quarter GDP expected to exceed the 6% growth seen in the first quarter. Against this backdrop, the USD/SGD rate has declined slightly but remains close to this year’s highs. The bank expects this pair to consolidate within a specific range and not a robust trend in the near future.
USD/SGD Swing Forecast
“Looking ahead, the outlook for the manufacturing sector remains constructive.”
“We will get the preliminary Q2 GDP report in the next week or so.”
“It is expected to post strong performance and even exceed 6% year-on-year growth in the first quarter, driven by a strong manufacturing sector and continued strong domestic demand.”
“Growth this year is likely to exceed the upper end of the government’s forecast of 2-4%, and the official forecast may be revised upwards when the final second-quarter report is published around August.”
“USD/SGD was slightly lower yesterday by about 30 pips to 1.2930. It remains near this year’s high and we expect near-term consolidation between 1.28 and 1.30.”
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
