After the GDP and trade numbers data publication, the Singapore dollar kept strengthening against the US Dollar. USD/SGD is trading at 1.3430, about 2.3% below its highest in December 2021.

Singapore GDP data

Singapore’s economy improved in the fourth quarter regardless of the country battling Covid-19. The economy grew by 6.1% on a quarter-on-quarter basis, better than the 5.9% previous estimate.

Respectively, the economy had a 10.7% growth on YoY basis, which corresponded with the precedent estimate. Statisticians credited this to strong consumer spending and exports. By 2021, the economy grew by 7.6%, higher than the previous 7.2% estimation.

Singapore’s non-oil exports sharply shot from 2.6% in December to 5.0% in January. Consequently, this data leaped by 17.6% YoY, where most exports were to Southeast Asia.

The USD/SGD has lately been indicating bearish patterns. Investors expect more growth, and Singapore’s central bank suggested a hawkish direction than expected.

Two weeks ago, Singapore’s monetary authority astonished the public by declaring implementation of an out-of-cycle tightening in its inflation battles. It raised the appreciation rate of its policy band. That was the first time since 2015 that the bank made this decision, and then it intervened and eased policy as oil prices crashed.

The USD/SGD also dropped after the Fed’s minutes delivery as the bank officials hinted a tightening acceleration.

The daily chart indicates that the USD/SGD pair has had a consistent bearish pattern. It formed a bearish descending triangle pattern shown in blue along the way. It’s now hovering slightly above the triangle’s lower side.

The pair has also dropped below the 25-day and 50-day moving averages, while the MACD and the money flow index (MFI) are pointing lower. Hence, the pair may have a bearish breakout in the next few days.

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