Singapore: Manufacturing sector seen under pressure – UOB

Pablo Piovano FXStreet

Economist at UOB Group Barnabas Gan assessed the latest PMI figures in Singapore.

Key Quotes

“Singapore’s manufacturing and electronic PMI reported by SIPMM rose in May 2020 after touching its 2008 lows in the previous month. They however remained below their 50.0 mark, marking the fourth straight month of contraction.”

“New orders, exports, and factory output continued to drag the overall PMI indices, highlighting the ongoing supply chain disruptions and negative demand shocks pertinent from the COVID-19 pandemic.”

“In another release by IHS Markit, Singapore’s whole economy PMI declined to a new low of 27.1 in May 2020, down from 28.1 in the previous month. The latest data suggests ‘another considerable drop in business activity’.”

“Collectively, the contraction seen in both Markit and SIPMM PMI for May 2020 suggests further headwinds against Singapore’s manufacturing environment. Key manufacturing sectors, save for biomedical manufacturing, could remain in the doldrums for the year ahead as COVID-19 wears on.”

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 falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.