Singapore Dollar to Pound Sterling (SGD/GBP) Exchange Rate Falls from 6-Month High

On Tuesday, the Singapore Dollar (SGD) managed to advance to its highest level since February, as the Pound (GBP) was weighed upon heavily by weaker than forecast UK inflation data.

The Singapore Dollar found support on Monday after data showed that exports out of the Asian nation fell less than expected in July as exports to the world’s major economies increased.

The data raised economist hopes that the nation’s manufacturing sector may have bottomed out due to an increasingly optimistic appraisal of the US economy and signs that China is still performing well.

According to the trade agency International Enterprise Singapore, non-oil domestic exports eased by 3.3% in July from the previous year, beating expectations for a figure 3.9% decline.

Exports to the USA increased by 8.6% whilst goods sent to the European Union increased by 24.8%. Electronics exports in July fell 7.9% from the previous year, but the pace of decline slowed from a sharp 17.4% contraction in the previous month.

The decline in electronic goods took some of the shine off the data as they are a key driver of Singapore exports, but the sector has been lagging regional peers such as South Korea and Taiwan due to stiff competition and a lack of popular high-tech products including Smart phones.

The positive trade data followed last week’s data, which showed that Singapore’s economy expanded unexpectedly in the last quarter as manufacturing weakened less than feared and as recoveries in neighbouring Asian and global trade partners assisted.

“While global growth in the first quarter of the year turned out weaker than expected, recent incoming data suggest that global economic activities are recovering modestly,” said the Singapore Trade Ministry said.

The Singapore Dollar was able to make further gains against the already weakened Pound on Tuesday following the publication of worse than forecast UK inflation data.

The report released by the UK’s Office for National Statistics reduced the likelihood that the Bank of England will raise interest rates before the end of the year, something that weighed heavily on Sterling.

‘A long stretch of below-target inflation increases the likelihood that the Bank of England will raise interest rates in early 2015 rather than this year. Spare capacity, which is the Bank’s stated guiding factor in its decision, is remaining higher for longer than expected’ said Alasdair Cavalla an economist at the CEBR.

The next market moving data releases due for Singapore Dollar is due next Monday with the latest inflation rate and Industrial production data due next Tuesday.

Singapore to Pound Sterling (SGD/GBP) Exchange Rate Softens Following BoE Minutes

The Singapore Dollar gained against the Pound Sterling yesterday after UK inflation data left a lot to be desired. Both the Consumer Price Index and Retail Price Index filed losses which had an immediate detrimental effect on Sterling.

Today has seen a slight reversal in fortune for Sterling after the publication of the Bank of England Minutes of the Monetary Policy Committee Meeting held on 6 and 7 August 2014. Despite the continuation of the record low 0.5% interest rate it has been revealed that two of the ten committee members voted to raise the interest rate. This has added fuel to dwindling speculation of an interest rate hike before 2015.

Singapore Dollar (SGD) Exchange Rates