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Currency Market Analysis

Jan 22, 2019 | Currency Market Analysis

Global Themes

SGD lower as IMF cuts global growth forecasts

FX markets were muted overnight after the International Monetary Fund downgraded its 2019 global growth forecasts to 3.5%.

This is the lowest forecast in three years.

The IMF said the ongoing trade dispute between the US and China was a key risk for the global economy and also warned that a “no deal” Brexit and the potential Chinese economic slowdown could also weigh on growth.

The USDSGD climbed 0.1%.

Not so bad

Yesterday, the SGD was supported after key Chinese data came in a little above expectations.

While Chinese GDP in the December-quarter was reported at 6.4% in annual terms, in line with lowered forecasted, retail sales and industrial production both beat expectations.

The EURSGD fell 0.1% while the JPYSGD gained 0.1%

Inflation watch

Europe will be in focus tonight with German business confidence to be watched after growth in the Eurozone’s largest economy fell to a five-year low.

Tomorrow, the focus returned to the region, with New Zealand inflation due tomorrow ahead of next week’s Australian inflation numbers.

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