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GDP Data Spurs SGD Strength

SGD

Strong GDP data has helped push USD/SGD through 1.32 for the first time since April 2018.

  • GDP rose 2.1% Q/Q in Q4 according to preliminary data, well above expectations of 1.3%. The breakdown of the data was robust too, Construction jumped 34.4% as activity resumed, services grew 2.4%, while manufacturing shrank 2.6%
  • In a New Year's address Prime Minister Lee Hsien Loong said "economically, we are not yet out of the woods either, but we are beginning to see signs of stabilization. We look forward to a rebound in 2021, although the recovery will be uneven, and activity is likely to remain below pre-Covid-19 levels for some time."
  • The market will now look ahead to Singapore December PMI at 1300GMT/2100SGT.

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