Inflation Data Eyed; SGD Steady After 3 Sessions Of Decline

Market participants will look ahead to November CPI figures from Singapore in today's session, data due at 0500GMT/1300SGT. The headline Y/Y figure is expected at -0.2%, in line with October. The core figure, which is used by the MAS to keep tabs on price pressures is expected at -0.1%, from -0.2% in October.

• The latest inflation report indicated the MAS are positive on prospects for inflation, predicting the measure to venture into positive territory in 2021 as domestic demand rises and the negative effects of government subsidies dissipate.
• Elsewhere, Singapore has followed suit with many other countries and imposed a travel ban to and from the UK as fears over a new strain grow. The government also said recently it aims to secure enough vaccines to inoculate its population by Q3 2021.
• There were some reports that Singapore and the Zhejiang province were to increase work in areas such as trade. The Senior Minister of State for National Development said the pandemic has demonstrated cooperation between Singapore and Zhejiang is strong and resilient and that the policies will support growth.
• USD/SGD slightly lower but moving in a tight range, steadying after 3 straight days of declines. The pair last down 8 pips at 1.3351. Near term support is seen at the 20-day MA of 1.3340, resistance at yesterday's high of 1.3378 and recent uptrend highs of 1.3404. Touching key psychological level of 1.3400 quickly set into motion a flourish of downward momentum earlier this week.