SGD Steady; Industrial Production Eyed

Singapore is notable for being one of the few released on a limited data docket. Industrial production figures for November will be released at 0500GMT/1300SGT.

• The Y/Y figure is expected to rise 14.1%, after dropping 0.9% in October. The M/M figure is expected at 2.7% from a 19% plunge previously.
• The October print was a sharp about-turn from September's revised growth figure of 25.6%, which had been boosted by the volatile biomedical cluster and a strong showing by electronics. In the wake of the October data JPMorgan analyst Ong Sin Beng, categorised the weakness as a blip and noted that PMI survey's continue to signal expansion. In November manufacturing PMI dipped 0.1pts to 50.4.
• Data on Wednesday showed deflation eased in November, with both core and headline inflation at -0.1% Y/Y, compared to -0.2% in October. The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) kept their official inflation outlook for 2020 and 2021 unchanged from earlier months. November's slower decline was due mainly to smaller falls in the costs of services, and electricity and gas, as well as higher food inflation.
• USD/SGD has been steady, last down 21 pips at 1.3295 on broad US dollar weakness. Strong support is seen at 1.3249, the December low. We are also closing in on the December 21 opening gap from 1.3270-1.3286.
• Markets in Singapore will be closed on Friday for the festive holiday.