Forex: USD/SGD breaks to fresh 1-month highs on much worse than expected 3Q GDP

FXstreet.com (Barcelona) - Small reaction so far in USDSGD to the upside after much worse than expected fall in Singapore 3Q GDP, last quoted around fresh weekly highs 1.2272 bids, up from 1.2237 previous price to the release, also weekly open price. Very low liquidity in USDSGD last weeks, with 5 year lows at just 36 pips of range per day on average for last 15 trading days.

Final figure showed 3Q GDP for Singapore shrank by -5.9% when a -2.9% was expected, worst decrease in 2 years according to Reuters, while non-oil exports rose higher than expected year on year by +7.9%. Year on year GDP showed a +0.3% increase when +0.9% was expected, lowest level of growth since it peaked in year 2010. The pair keeps inside the 1.2150/1.2350 range it has been for last 3 months.

Immediate resistance to the upside for USDSGD shows at recent session/weekly highs/Oct 10 lows 1.2276/9, followed by Sept 13 highs at 1.2311, and Sept 26/Oct 03 highs at 1.2340. To the downside, closest support lies at Oct 23/Nov 05/09 highs 1.2265, followed by Sept 28 lows at 1.2233, and Nov 14 lows at 1.2210.