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Supported By Electronics Sector Strength

SGD

After another session of robust gains on Friday USD/SGD has pulled back in Asia trade on Friday, the pair last trades at 1.3300, down around 26 pips on the session but off session lows of 1.3284.

  • The pair is moving as a function of USD which has weakened in Asia after continuing its rally on Friday. SGD was resilient on Friday, declining less than some of its peers, some of this can be attributed to robust industrial production data released late on Friday.
  • Factory output rose 8.6% in January, above estimates of a 3.6% gain. The print was buoyed by the semiconductor boom globally, while the broader electronics sector rose 19.8%. Strong data has led to the suggestion the MAS could revise its growth forecasts higher.
  • Markets now look ahead to PMI and Electronics Sector Index data tomorrow.

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