The final Singapore GDP for the first quarter decreased by 4.7% quarterly and by 0.7% annualized. Economists predicted a decrease of 7.4% and 1.5% annualized. Forex traders can compare this to the previous Singapore GDP for the first quarter, which decreased by 10.6% quarterly and by 2.2% annualized. The Singapore CPI for April decreased by 0.7% annualized. Economists predicted a decrease of 0.4%. Forex traders can compare this to the Singapore CPI for March, which increased by 0.3% annualized. Singapore Industrial Production for April increased by 3.6% monthly and by 13.0% annualized. Economists predicted a decrease of 9.1% and 0.6%. Forex traders can compare this to Singapore Industrial Production for March, which increased by 21.7% monthly and by 16.5% annualized.
The US S&P/Case-Shiller Composite 20 for March is predicted to increase by 0.20% monthly and by 3.30% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for February, which increased by 0.40% monthly and by 3.50% annualized. US Consumer Confidence for May is predicted at 88.0. Forex traders can compare this to US Consumer Confidence for April, which was reported at 86.9. US New Home Sales for April are predicted to decrease by -21.9% monthly to 490K new homes. Forex traders can compare this to US New Home Sales for March, which decreased by 15.4% monthly to 627K new homes.
The USD/SGD remains bearish despite the threat of negative interest rates in Singapore. Tensions between the US and China are increasing, first over the Covid-19 pandemic, and then over the proposed Chinese security law for Hong Kong. Price action is inside the Ichimoku Kinko Hyo cloud, where an increase in bearish forces is ongoing. Will today’s economic data encourage a breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the USD/SGD remain inside the or breakdown below the 1.4150 to 1.4250 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4200
- Take Profit Zone: 1.3745 – 1.3815
- Stop Loss Level: 1.4275
Should price action for the USD/SGD breakout above 1.4250 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4275
- Take Profit Zone: 1.4430 – 1.4495
- Stop Loss Level: 1.4200
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