Our free forex signals service today looks at the USD/SGD pair and we have the entry, stop and take profits levels for you.
But before we get to that, we begin with some background on the Singapore economy and prospects for the city state’s currency against the US dollar.
Tomorrow the GDP data for the second quarter is released and it is expected to see a huge bounce year on year.
Last month analysts raised their GDP forecast, after a better-than-expected performance had landed in Q1. First quarter 2021 economic expansion was an impressive 1.3%, beating the estimate of -1.1%. That reflected the apparent success that Singapore – and Asia more widely – had made battling the Covid pandemic.
Quarter on quarter, economists polled in the Monetary Authority of Singapore’s (MAS) Survey of Professional Forecasters estimate Singapore’s GDP to grow by 6.5% in Q2, which is higher than other industry consensus data that estimates 4.3%. Further, the MAS survey figure is higher than the 5.8% that was projected in the prior survey.
The chances of the rebound being weaker than previously anticipated are rising as the vaccine rollout in Asia fails to accelerate from an already lowly inoculation rate.
Singapore GDP to record strong rebound but slow vaccine rollout a negative
On a year-on-year basis the MAS survey economists have pencilled in 1% for Q2 2021 GDP. That represents an impressive turnaround, but of course must take into account the base effect of the comparison being distorted by the unprecedented size of the sudden contraction as the pandemic hit in 2020, which saw Q2 2020 GDP drop by -13.2%.
Other economists think the year-on-year GDP data will be a little less than the MAS survey estimate, coming in at 14.2%, but all will be revealed when the data is released tomorrow.
Suffice to say, USD/SGD is trading at the high for the year to date at 1.3518 after reaching a YTD low on 25 February, when USDSGD was 1.3187.
There could be more weakness for SGD tomorrow triggered by the data release, but today all eyes will be on US CPI data due today for signs of where inflation is heading.
If you want try automated forex trading the USDSGD pair, then read our introductory guide by clicking the link.
Free forex signals – buy USDSGD
Instrument: USD/SGD
Order: BUY STOP
Entry price: 1.3556
Stop Loss: 1.3488
TP1: 1.3628
Recommended Risk: 1%
Risk / Reward Ratio: 1:1.05
Signal validity period: Good until cancelled
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