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Currency Market Analysis

Jan 21, 2019 | Currency Market Analysis

Global Themes

SGD slips ahead of China GDP

The Singapore dollar slipped back to one-week lows ahead of today key release of Chinese economic data.

The SGD’s loss came despite another strong week for global share markets with the US’s Dow Jones index up 11% since 21 December.

The SGD’s weakness has been blamed on a stream of recent poor trade data with both Chinese and Singaporean trade numbers missing forecasts by a significant amount last week.

Trade pressured

The USDSGD climbed 0.3%.

The SGD’s weakness saw the EURSGD climb the euro weakened versus most currencies. The EURSGD gained 0.1% as it climbed from 18-month lows.

The SGD also fell versus the Swiss franc and New Zealand dollar.

The local currency gained versus the Japanese yen and British pound.

Chinese data

Today’s Chinese data will be the big driver to start with week with markets forecasting December quarter economic growth to fall to the lowest level in 28 years.

Chinese annual GDP is expected at 6.4% which is a sharp drop from the 6.8% reported this time last year. Chinese industrial production and retail sales will also be closely watched.

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