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Crucial U.S Inflation Data Awaits Skittish Traders


The USD/SGD is flirting with values not seen since early in the second week of January, as financial houses and traders await important U.S Producer Price Index numbers.

The USD/SGD is trading near the 1.33400 mark as of this writing, after touching an approximate high of 1.33800 yesterday. There has been a choppy yet incremental reversal lower since Wednesday’s loftier values, but the USD/SGD remains within the higher elements of its range and values not seen since early January. Technical and fundamental traders should brace for additional volatility today because the U.S. will release crucial inflation statistics via the Producer Price Index reports.

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Having enjoyed a long bearish trend the USD/SGD has suddenly found the ability to create bullish momentum since the 2nd of February when it touched a low of around 1.30330. It is not a coincidence the USD/SGD has gained value since this date, because on the 3rd of February, the jobs numbers from the U.S. came in stronger than expected.  Additionally, this Tuesday the CPI data from the U.S. came in with mixed results showing inflation remains stubborn. Today’s Producer Price Index reports will certainly be watched carefully by financial institutions.

USD/SGD Technical Traders should give Attention to Fundamentals Today

Technical traders may only be interested in their charts, but it would be wise to keep attention on the results of the PPI data from the U.S today, because it will impact the USD/SGD. Trading leading up to the announcement and following the publication is going to become volatile. The reports will be released late for the Asian Forex markets, so traders should expect choppy results to last into early tomorrow as reactions are acted upon.

  • The range of 1.33300 to 1.33500 should be watched carefully in the short-term and this battleground for the USD/SGD could see rather whipsaw conditions before the U.S inflation numbers.
  • Tuesday’s trading before the CPI numbers seems to show technically that financial houses believed inflation would come in weaker than anticipated.
  • However, when the Consumer Price Index came in slightly higher via the yearly average the USD/SGD promptly climbed.

USD/SGD Near-Term Trend in Question as Today’s PPI Data Awaits

Speculators who grew accustomed to the bearish trend in the USD/SGD based on China opening for business, combined with a less aggressive outlook from the U.S. Federal Reserve will find today’s U.S. inflation reports noteworthy. If the reports come in higher than expected key technical resistance could be challenged above and the 1.33900 to 1.34000 could see a test. If the PPI data meets or is weaker than anticipated, the USD/SGD is likely to resume a downward push which could produce a retest of lows seen on early Tuesday and late last week.

Singapore Dollar Short-Term Outlook:

Current Resistance: 1.33660

Current Support: 1.33230

High Target: 1.33980

Low Target: 1.32720

USD/SGD

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