Singapore Dollar: Narrow trading range persists as PMI backs growth – Commerzbank

Near-term consolidation remains the expectation for USD/SGD, which Commerzbank analysts note has moved within a sideways 1.2750–1.2850 band since September. On the economic outlook, they see resilient Q4 manufacturing and GDP growth continuing into early 2027. Singapore’s manufacturing PMI edged lower in October but recorded its 15th month of expansion, while AI-related demand supported electronics.

Does Resilient PMI Point to More Sideways Trading in USD/SGD?

"October manufacturing PMI eased to 51.4 from 51.7 in September, but it still marked the 15th consecutive month of expansion. The moderation reflected slower growth in new orders (52.1 vs 52.2 previously), output (51.0 vs 51.2 previously) and employment (51.1 vs 51.3 previously)."

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

"However, new export orders edged higher to 51.9 from 51.8 previously, suggesting that external demand remains resilient. The electronics PMI also moderated to 52.5 from 52.9 previously, although it remained comfortably in expansion territory. This was supported by sustained global demand for AI-related semiconductors and electronics. Electronics new export orders rose to 53.2 from 53.1 previously, while new orders held firm at 53.5 from 53.6 previously."

"However, the continued expansion in new export orders, particularly in electronics, points to sustained external demand and suggests that the September weakness may not signal a broader manufacturing downturn. Q3 GDP expanded by 5.4% yoy, supported by technology-related sectors, and the latest PMI readings are consistent with continued growth in Q4, albeit at a more moderate pace. Manufacturing should remain a key growth driver into the first half of 2027."

"For USD/SGD, it has traded sideways since September, holding within the 1.2750-1.2850 range. We look for continued consolidation in the near term, with oil prices and the USD to be the main drivers."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)