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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SGD
Q2 jobs growth in Singapore was reportedly +66.5k, above the +42k reported for Q1. Importantly total employment is now very close to pre-pandemic levels. This should give the MAS some comfort the domestic economy remains on a reasonable footing.
- The non-resident sector remains a laggard form a jobs standpoint, but that should improve as Singapore has eased restrictions further and is actively encouraging non-residents back into the local jobs market. Job vacancies edged down to 126.1k in the second quarter, but is still close to historical highs.
- There is still a risk the MAS needs to tighten further at the October policy meeting. The August CPI data is due next Friday (23rdof September), which will be key. Ahead of then, August export data prints this Friday.
- The SGD NEER has been trending higher this month, up a further 0.4% according to Goldman Sachs estimates. Relative to the top-end of the band, we are still below 2022 highs, see the chart below, but up from August lows.
- Given broad based USD strength, playing SGD FX on crosses is likely to remain the preferred play.
Fig 1: Goldman Sachs SGD NEER Estimate - Deviation From The Top-End Of The Policy Band
Source: Goldman Sachs/MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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