Commerzbank highlights that strong Singapore manufacturing and electronics PMIs underpin a constructive growth outlook, with Q2 GDP expected to exceed Q1’s 6% expansion. Against this backdrop, USD/SGD has eased slightly but remains near this year’s highs. The bank expects the pair to consolidate in a defined range rather than trend strongly in the near term.

Range-bound outlook for USD/SGD

"Looking ahead, the manufacturing outlook remains constructive."

"We will get the advance Q2 GDP report in the next week or so."

"It is expected to post a strong performance and even exceed Q1’s 6% yoy expansion, supported by a strong manufacturing sector and continued firm domestic demand."

"Growth this year is likely to exceed the upper end of the government's 2-4% forecast, and the official forecast may be revised up when the final Q2 report is released around August."

"For USD/SGD, it was slightly lower yesterday by around 30 pips to 1.2930. It is holding around this year's high, and we look for consolidation in the near term between 1.28 and 1.30."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)