The Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate spent last week trading between highs of 2.1064 and lows of 2.0886 as investors responded to Singapore’s inflation data and a mixed bag of UK reports.
The US Dollar to Singapore Dollar (USD/SGD) exchange rate, meanwhile, advanced to an almost 4 ½ year high after the latest figures confirmed an ongoing downtrend in Singapore’s consumer prices.
Data showed the inflation rate in the island nation falling by 0.4% on the year, marking the lowest level since the beginning of 2010.
On Tuesday the Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate was able to hit a high of 2.0928 following the publication of the Singapore Institute of Purchasing & Materials Management (SIPMM) Manufacturing PMI.
Conversely, the US Dollar to Singapore Dollar (USD/SGD) exchange rate drifted from a peak of 1.3662 to trade in the region of 1.3637 amid a lack of notable US reports.
The measure of Singapore’s manufacturing sector fell from 49.9 in January to 49.7 in February, moving further away from the 50 mark separating growth from contraction and the nation’s 2012-2015 average of 50.31.
This marked the third consecutive month of contraction.
In a statement, SIPMM noted; ‘The contraction in the overall PMI was attributed to further declines in new orders.’
The GBP/SGD pairing was also supported by the UK’s better-than-projected Construction PMI.
Yesterday’s UK Manufacturing PMI came in above estimate, and the construction measure followed suit by printing at 60.1 instead of drifting to 59.0 as forecast.
If tomorrow’s UK Services PMI makes it a hat trick of positive results, the Pound could approach Thursday’s Bank of England (BoE) interest rate decision in a fairly strong position.
As the central bank isn’t expected to make any alterations to fiscal policy this time out, the rate announcement may have a muted impact on Sterling trading.
Volatility is more likely to be occasioned by the BoE/GfK inflation projection, due out on Friday.
Singapore isn’t scheduled to release any further ecostats over the remainder of the week, but the nation will be publishing unemployment and retail sales numbers on March 13
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The Pound Sterling to Singapore Dollar (GBP/SGD) exchange rate was trading in the region of 2.0927 as the European session progressed.