The USD/SGD currency pair extended its streak of losses to a 2-week trough of 1.2614 on Wednesday ahead of US jobs and inflation data prints, which may provide fresh clues over the Fed’s monetary policy trajectory.
Employers in all sectors of the US economy, excluding farming, probably added 70,000 job positions in January, according to market consensus, following a job growth of 50,000 in December.
And, the unemployment rate probably remained steady at 4.4% in January.
San Francisco Federal Reserve President Mary Daly said last week that one or two additional interest rate cuts might be required to counteract weakness in the US labor market.
At the same time, US December retail sales fell short of market consensus, while indicating a slowdown in consumer spending and also reinforcing expectations of further policy easing by the Federal Reserve.
Markets are now pricing in a higher probability of three interest rate cuts this year, compared to two a week earlier.
Meanwhile, in Singapore, final data showed the economy had expanded 6.9% year-on-year in Q4, accelerating from 4.6% YoY in the preceding quarter and also exceeding the flash estimate of 5.7%.
Taking into account the entire 2025, Singapore’s GDP grew 5%, easing from a 5.3% expansion in 2024, but topping the Ministry of Trade and Industry’s estimate of 4.8%.
The MTI has now revised up its 2026 GDP growth forecast to 2%-4% from 1%-3% previously. The MTI said a sustained artificial intelligence boom, expansionary fiscal policies in major economies and accommodative global financial conditions would likely support global growth in 2026.
The USD/SGD currency pair was last down 0.14% on the day to trade at 1.2623.
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