Singapore: Economy forecast to expand 5% in 2021 – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Barnabas Gan comments on the latest GDP data in Singapore.

Key Quotes

“Based on the final print by the Ministry of Trade and Industry (MTI), Singapore’s 4Q20 GDP contracted 2.4% y/y, improving from 3Q20’s pace of -3.8% y/y. On a q/q seasonally adjusted basis, the economy expanded 3.8%, extending the +9.0% q/q sa growth in 3Q20.”

“Overall, growth was underpinned by output expansions in the electronics, biomedical manufacturing, precision engineering and chemicals clusters.”

“Singapore’s growth outlook for 2021 will depend on several factors, including (1) how COVID-19 pandemic evolves, (2) geopolitical environment, and (3) global trade dynamics.”

“On the back of an expected pickup in external demand, coupled with Singapore’s relatively well-controlled COVID-19 situation, we keep to our call for Singapore to expand by 5.0% in 2021, against MTI’s outlook of between +4.0% and +6.0%.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold eases from one-week top, falls below $4,200 as hawkish Fed and Iran risks support USD

Gold attracts some sellers after touching a one-week high earlier this Monday, sliding back below the $4,200 mark during the European session and snapping a two-day winning streak. The US Federal Reserve's hawkish outlook helps limit the downside for the US Dollar, and caps the non-yielding bullion. Meanwhile, crude oil prices fell amid hopes that the Russia-Ukraine energy ceasefire deal will ease global fuel shortages and, in turn, reduce inflationary risks.

Cardano holds above EMAs as recovery builds

Cardano (ADA) reclaims trading above the key support zone on Monday after a 2.85% correction last week. Improving derivatives positioning and constructive technical outlook support a recovery for ADA. Derivatives data shows an improving sentiment among Cardano traders. CoinGlass’ long-to-short ratio for ADA reads 1.01 on Monday, flipping into green territory.

USD/INR: Deep in red below 96.00 as RBI rescues Indian Rupee

After opening significantly higher against the US Dollar (USD) on Monday, the Indian Rupee (INR) clings to recovery gains near 95.80. The pair remains undermined by the Reserve Bank of India’s (RBI) fresh measures to curb US Dollar demand, which has brought relief for the Indian currency.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?