- Singapore’s economy expanded at a slower pace than forecast in Q2 at 3.8% y/y, lower than expectations of 4.1% and compared to a 4.3% in Q1.
- GDP data clouded the outlook for the export-reliant nation at a time when global trade risks are rising.
- Growth could slow further as an export boom moderates while risks are mounting amid threat of tariff wars, high oil prices, a global policy tightening cycle, and a U.S. dollar appreciation.
- Singapore dollar is extending weakness against its US counterpart, is trading at 1.3688 at the time of writing, up 0.41 percent on the day.
- Technical indicators are supporting upside in the pair. Price action has held support at 100W EMA and has broken above 200W SMA at 1.3655.
- Close above 200W SMA, we see scope for test of 61.8% Fib retracement of 1.4546 to 1.30088 fall at 1.3958.
- On the daily charts 200-DMA at 1.3368 is major support. Breach at 200-DMA could see bearish reversal.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 142.224 (Bullish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
