- Singapore dollar (SGD) falls after yesterday’s gains
- Chinese imports dropped -3.9%
- US Dollar (USD) rises for a third day
- US inflation data is due tomorrow
The US Dollar Singapore dollar (USD/SGD) exchange rate is rising after small losses yesterday. The pair fell 0.08% in the previous session, settling on Monday at 1.3404. At 16:00 UTC, USD/SGD trades +0.17% at 1.3427 and is in a range of 1.3380 and 1.3433.
The Singapore Dollar is heading lower amid weakness in Asian currencies after disappointing Chinese trade data. Chinese exports rose by a less-than-expected 6.7% year over year in November, down from 12.7% in October, highlighting weak demand for Chinese products. Meanwhile, imports in China fell 3.9% annually, extending losses of 2.3% in October, highlighting deteriorating domestic demand. The data paints a weak picture for China despite recent stimulus measures.
The weak data comes after Chinese state media outlets reported on Monday that Communist Party officials had agreed to shift their monthly monetary policy stance to moderately lose a position that was lost in place 14 years ago in the financial crisis.
These comments come ahead of the central economic work conference in China, which is expected to set key targets and policy markers for next year.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies, trades at 106.58 at the time of writing, up 0.42%, marking its third day of gains.
The US dollar is pushing higher against its major pairs as investors await tomorrow’s inflation data which could provide further insight into the Federal Reserve’s future path for interest rates.
Money markets are pricing in an 86% probability that the Fed will cut rates by 25 basis points next week. However, given expectations of inflationary policies from incoming President Trump, the Fed could become more cautious heading into 2025.
Tomorrow US inflation data is expected to show that consumer prices ticked higher to 2.7% annually, up from 2.6%. Meanwhile, core inflation, which strips out more volatile items such as food and fuel, is expected to hold steady at 3.3%.