|

Singapore Dollar: Growth strength fails to lift SGD – Commerzbank

Commerzbank’s Singapore team highlights that Singapore’s Q1 Gross Domestic Product (GDP) was revised sharply higher to 6.0% year-on-year, with strong AI-related demand and robust construction and services activity. Inflation remains contained near the lower end of MAS’s forecast range. Despite this supportive backdrop and lower Oil prices, USD/SGD remains confined within a 1.2650–1.2840 range.

Stronger growth yet contained inflation

"The final Q1 GDP was revised up significantly to 1.0% qoq sa from -0.3% for the advance estimate (Bloomberg consensus: 0.2%) vs 1.3% in Q4 2025. On an annual basis, it translated to 6.0% yoy from 4.6% initially (Bloomberg consensus: 5.2%) vs 5.7% in Q4 2025."

"Despite the strong Q1 outturn, MTI warned that growth headwinds have “risen significantly” due to ongoing supply chain disruptions and higher commodity prices. While AI-related capex is expected to remain supportive through 2026, MTI cautioned that tech firms could scale back investment commitments, weighing on activity."

"On inflation, April CPI held steady at 1.8% yoy (Bloomberg consensus: 2.1%) and unchanged from March. Although fuel and energy inflation picked up sharply, prices for non-energy goods and services remained relatively stable, suggesting limited second-round pass-through from higher global commodity prices."

"In FX, USD/SGD fell 0.2% to 1.2770 yesterday, driven by lower crude oil prices and a weaker USD. The pair has been rangebound since April, holding within the 1.2650-1.2840 range."

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

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

GBP/USD surrenders some gains, back to 1.3420

GBP/USD holds on to moderate gains above 1.3400 the figure on Friday. Optimism surrounding the UK government’s leadership transition and expectations of further BoE tightening support the British Pound, while easing tensions in the Middle East and fading Fed rate-hike expectations weigh on the US Dollar.

EUR/USD turns positive, targets 1.1450

EUR/USD now picks up pace and advances toward the 1.1440 region on Friday, up modestly for the day. With no major economic data due, lingering uncertainty over the US-Iran conflict keeps investors cautious, limiting the pair's upside.

Gold remains offered, still below $4,100

Gold struggles to extend Thursday’s rebound and navigates below the $4,100 mark per troy ounce on Friday. Uncertainty surrounding the Middle East conflict limits the precious metal’s upside, which is also under pressure amid rising US Treasury yields across the curve.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.