Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore Trade Balance for May came in at $3.243B. Forex traders can compare this to the Singapore Balance for April, reported at $4.208B. Non-Oil Exports for May increased 3.2% monthly and 12.4% annualized. Economists predicted a rise of 1.4% and 7.6%. Forex traders can compare this to Non-Oil Exports for April, which contracted 3.3% monthly and expanded 6.4% annualized.
The Eurozone CPI for May is predicted to increase 0.8% monthly and 8.1% annualized. Forex traders can compare this to the Eurozone CPI for April, which rose 0.6% monthly and 8.1% annualized. The Eurozone Core CPI for May is predicted to rise 0.5% monthly and 3.8% annualized. Forex traders can compare this to the Eurozone Core CPI for April, which increased 0.5% monthly and 3.8% annualized. The Eurozone Harmonized Core CPI for May is predicted to rise 0.7% monthly and 4.4% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for April, which expanded 1.2% monthly and 4.4% annualized.
Inflation data out of the Eurozone and Canada could move the Forex market today if it clocks in higher than forecast. After the US Federal Reserve hiked interest rates by 75 basis points a few weeks after Fed Chief Powell ruled it out, it is likely another 75 basis point rate hike could follow in July. It shows the US central bank underestimated inflation in May, despite warning signs rampant for over two years. Global central banks remain behind the curve, as evident by the surprise 50 basis point increase by the Swiss National Bank yesterday, taking rates from -0.75% to -0.25%. The ECB held an ad hoc meeting but is unlikely to move amid a lack of leadership. While central banks hope to avoid a recession, they watch one unfold and support stagflationary conditions. Given the collapse of the Euro, the risk remains to the upside.
The forecast for the EUR/SGD turned moderately bullish after this currency pair bounced off its horizontal support area. Confirming the lack of short-term bearishness are the flat Kijun-sen and the Tenkan-sen. Adding to the bullish outlook is the Ichimoku Kinko Hyo Cloud, which entered a sideways trend, while the Senkou Span A displays early signs of an uptrend. Forex traders should monitor the CCI after it has accelerated from extreme oversold territory and completed a breakout. A move above zero could trigger the next advance. Can bulls add to recent gains and push the EUR/SGD into its horizontal resistance area above the Ichimoku Kinko Hyo Cloud? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/SGD remain inside the or breakout above the 1.4500 to 1.4610 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4555
- Take Profit Zone: 1.4800 – 14860
- Stop Loss Level: 1.4410
Should price action for the EUR/SGD breakdown below 1.4500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4410
- Take Profit Zone: 1.4265 – 1.4310
- Stop Loss Level: 1.4500
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