Tuesday’s British inflation data has printed particularly poorly, causing the Pound to decline against the majority of its most traded currency competitors. Conversely, the Singapore Dollar has strengthened after domestic Gross Domestic Product figures eclipsed predictions.
The Pound Sterling to Singapore Dollar exchange rate is currently trending in the region of 2.0347.
Over the past few days the Pound has weakened as a result of pared bets on the timing of a Bank of England rate hike after concerns over country-specific global economic recovery.
In the aftermath of a report from the International Monetary Fund which stated that the pace of global economic growth has slowed considerably, the Singapore Dollar has softened against safe-haven assets.
The Pound Sterling to Singapore Dollar exchange rate has fallen to a low today of 2.0347.
On Tuesday the Pound has tumbled against the majority of its peers after inflation data printed far more negatively than expected. The Consumer Price Index softened beyond the median market forecast of a decline from 1.5% to 1.4%, with the actual result plunging to 1.2%. Similarly, Core CPI failed to meet with the market consensus of a drop from 1.9% to 1.8%, with the actual data falling to 1.5%.
Having highlighted inflation as one of the main obstacles preventing a benchmark rate hike, the Bank of England are now very likely to hold off tightening monetary policy for some time to come. With bets on rate revisions already pared as a result of the slowing global economic recovery, the Pound is unlikely to recover quickly.
In contrast, the Singapore Dollar has firmed up against many of its peers after domestic data printed positively. The Gross Domestic Product Growth Rate met with the previous figure on a yearly basis despite predictions of a slight decline. The quarter-on-quarter GDP growth rate advanced from the previous figure of -0.1% to 1.2%; eclipsing the median market forecast of a rise to 1.19%.
Forecast for the Pound to Singapore Dollar Exchange Rate
With little by way of domestic data pertaining to Singapore due out over the course of the week, the Singapore Dollar is likely to decline amid risk-averse trading.
Despite the release of a number of British data publications with the potential to spark changes on Wednesday, Sterling is unlikely to recover quickly from Tuesday’s disappointing inflation data. Average Weekly Earnings will be of interest as if wages continue to run well below the rate of inflation the BoE’s commitment to keeping interest rates on hold will strengthen.
The Pound Sterling to Singapore Dollar exchange rate has advanced to a high today of 2.0948.
