January 31, 2023 03:24 GMT
NEER Ticks Higher, Unemployment Rate At 7-Year Low
The December unemployment rate printed at 2% in line with expectations, with the November revised a touch higher to 2.1%. This is the lowest unemployment rate since early 2016.
- The SGD NEER (per Goldman Sachs estimates) is drifting higher post the unemployment rate print, albeit a touch off last week's high. We sit ~0.5% below the upper end of the band.
- USD/SGD is dealing marginally firmer today, up ~0.1% today, last printing at $1.3130/40.
- Technicals remain bearish for USD/SGD. We sit comfortably below the 20,50,100,200 EMAs. The next target for bears is the 2018 low at 1.3009, bulls first look to break 20-Day EMA at 1.3235 to halt the bear's momentum.
- The Fed meeting on Wednesday is the next macro risk event, with the Bloomberg median survey expecting a 25bps rate hike. Further out, Jan S&P Global PMI and Dec Retail Sales on Friday provide the next local data of note.