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NEER Softer In Early Dealing, USD/SGD Lowest Since Mid-May

SGD

The SGD NEER (per Goldman Sachs estimates) is a touch softer in early dealing, the measure however remains well within recent ranges. We now sit ~0.6% below the upper end of the band.

  • USD/SGD has fallen to its lowest level since May 17, broader USD flows are dominating, the pair sits at $1.3365/75. The pair is down ~1.2% month to date.
  • Bears have cleared the 20-Day EMA and now target the low from May 10 at $1.3227. Bulls first look to break above the 20-Day EMA ($1.3433) to turn the tide.
  • To recap from earlier in the session, May export data came in weaker than expected. The m/m printing at -14.6%, versus -1.9% forecast. This is the steepest m/m fall going back to 2012, but the m/m readings can be volatile and we have had positive outcomes in the past two months. The y/y print fell to -14.7% , also well below consensus estimates (-7.7%).
  • Looking ahead, next Friday's May CPI print is the only data of note next week. Headline CPI is expected to fall to 5.4% Y/Y from 5.7%, and Core CPI is also expected to tick lower to 4.7% Y/Y from 5.0%.

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