Singdollar Under Light Pressure After GDP Release, Briefing With Econ Off'ls

Spot USD/SGD has crept higher following the release of in-line final Q1 GDP readings out of Singapore. The rate last sits +13 pips at SGD1.3732, with bulls looking to further gains towards May 18 high of SGD1.3922. Bears need a dip through the nearby 50-DMA at SGD1.3708 before taking aim at Apr 21 low of SGD1.3600.

• The local economy grew 3.7% Y/Y in the three months through end-March, marching consensus forecast in Bloomberg survey.
• The Ministry of Trade & Industry reaffirmed its +3%-5% Y/Y growth forecast for this year, but said the actual outturn will likely be in the lower half of this range and warned that "the external demand outlook for the Singapore economy has weakened compared to three months ago."
• The MAS commented that the current monetary policy stance is appropriate and tightening delivered to date will dampen inflation, but warned against market volatility ahead.
• Growth data came on the heels of April CPI report published on Monday, which showed that headline inflation stayed at +5.4% Y/Y, missing median estimate of +5.6%. But core CPI inflation accelerated to +3.3%, the fastest pace in a decade.
• Looking further afield, Singapore's April industrial output will hit the wires on Thursday.