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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
Singapore August inflation data surprised again on the upside. Headline printed at 7.5% y/y, versus 7.2% expected. Core was also strong at 5.1% y/y (5.0% forecast). Only one category (out of 10) showed a weaker y/y pace compared to July. This may seal the deal in terms of another MAS tightening at the mid October policy meeting.
- The chart below plots SGD NEER changes against the headline and core y/y inflation prints. Note we assume further SGD NEER strength in September.
- SGD NEER y/y changes (+5.34%) are slightly ahead of core inflation but still below headline.
- USD/SGD moved lower post the CPI print, back sub 1.4185. The NEER also rebounded, with the Goldman Sachs estimate now at -0.38% from the top end of the band, we were at -0.48% earlier in the session.
Fig 1: SGD NEER Versus Singapore Inflation Outcomes
Source: 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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