Singapore: Retail Sales surprised to the downside in January – UOB

Pablo Piovano FXStreet

Senior Economist at UOB Group Alvin Liew reviews the latest release of Retail Sales in Singapore.

Key Takeaways

“Singapore’s retail sales started the new year on a cautious note, contracting by -9.4% m/m, -0.8% y/y in Jan following Dec’s high of 7.7% y/y (versus prelim est of 1.3% m/m, 7.4%. Excluding motor vehicle sales, the sequential decrease was smaller but still notable at -8.2% m/m, and it translated to +2.1% y/y increase (from +1.0% m/m, 9.5% y/y in Dec).”

“Outlook – We continue to expect domestic retailers to enjoy domestic and external supports, complemented by the return of major events such as various sports, concerts and BTMICE (Business Travel and Meetings, Incentive Travel, Conventions and Exhibitions) activities attracting tourist arrivals, while the tight domestic labour market will likely contribute further to domestic consumption demand. One of the key downside risks to retail sales in 2023 is the still-elevated inflation pressures that may increasingly curb discretionary spending of households, in addition to the 1ppt GST hike. The low base effect is also likely to fade going into the new year, rendering less uplift.”

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD eases to near 1.1650, eyes US PCE for fresh impetus

EUR/USD turns south to test 1.1650 in European trading on Friday, facing rejection once again near seven-week highs. The pair, however, continues to draw support from persistent US Dollar selling bias, despite a cautious market mood. Traders now await the US September PCE inflation and UoM Consumer Sentiment data.

GBP/USD holds gains near 1.3350 ahead of US data

GBP/USD sticks to a positive bias near 1.3350 in the European session on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation and sentiment data due later in the day. In the meantime, broad-based US Dollar weakness helps the pair stay afloat.

Gold remains below $4,250 barrier as traders await US PCE data for directional impetus

Gold gains some positive traction on Friday, though it remains confined in the weekly range. Dovish Fed expectations continue to undermine the USD and lend support to the commodity. Bulls, however, might opt to wait for the US PCE Price Index before placing aggressive bets.

UoM Consumer Sentiment Index expected to post a mild recovery in December

December’s preliminary Michigan Consumer Sentiment Index is forecast to have picked up to 52 from a three-year low of 51.0 in November. A stalled labour market and higher price pressures are likely to weigh on consumers’ confidence.

Canada Unemployment Rate expected to edge higher in November ahead of BoC rate decision

Statistics Canada will release its Labour Force Survey on Friday, and markets are bracing for a weak print. The Unemployment Rate is expected to tick higher to 7% in November, while the Employment Change is forecast to come in flat after a nice gain in October.

Pi Network Price Forecast: Bearish streak nears critical support trendline

Pi Network (PI) edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows.