Initial jobless claims started to increase in December and forex traders should monitor this trend. It may provide an early warning sign of where the US economy is headed. Regional economic reports have shown weakness across the country. The US Dollar came under heavy selling pressure at the end of 2019, but will the trend continue in 2020? The USDSGD completed a breakdown below its horizontal support area, is more downside on the way? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The fourth-quarter GDP out of Singapore expanded less than economists predicted, but third-quarter data was revised upwards. Singapore URA Property Index for the fourth-quarter matched the expansion in the third quarter. The Singapore Dollar has been the main beneficiary of protests in Hong Kong, but economic data has pointed to a slowing economy. Will the sell-off in the USDSGD accelerate with bears charging ahead, or will bulls step in and force a reversal? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for US Dollar trades:
- US Initial Jobless Claims and Continuing Claims: US Initial Jobless Claims for the week of December 21st are predicted at 222K and US Continuing Claims for the week of December 14th are predicted at 1,745K. Forex traders can compare this to US Initial Jobless Claims for the week of December 14th, which were reported at 222K and to US Continuing Claims for the week of December 7th, which were reported at 1,719K.
- US Markit Manufacturing PMI: The Final US Markit Manufacturing PMI for December is predicted at 52.5. Forex traders can compare this to the previous US Markit Manufacturing PMI for December, which was reported at 52.5.
Here are the key factors to keep in mind today for Singapore Dollar trades:
- Singapore GDP: The Singapore GDP for the fourth-quarter increased by 0.1% quarterly and by 8.8% annualized. Economists predicted an increase of 0.4% quarterly and 0.8% annualized. Forex traders can compare this to the Singapore GDP for the third-quarter, which increased by 2.4% quarterly and by 0.7% annualized.
- Singapore URA Property Index: The Singapore URA Property Index for the fourth-quarter increased by 0.3% quarterly. Forex traders can compare this to the Singapore URA Property Index for the third-quarter which increased by 0.3% quarterly.
Should price action for the USDSGD remain inside the or breakdown below the 1.3400 to 1.3475 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3435
- Take Profit Zone: 1.3160 – 1.3215
- Stop Loss Level: 1.3500
Should price action for the USDSGD breakout above 1.3475 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3500
- Take Profit Zone: 1.3625 – 1.3675
- Stop Loss Level: 1.3475
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