Singapore Dollar Consolidates Amid Dimmer Fed-Rate Cut Prospects — Market Talk

The Singapore dollar weakens against its U.S. counterpart in the Asian session. There are concerns about what the backlog of upcoming U.S. data may reveal about the economy, says Christopher Wong of OCBC's Global Markets Research in a note. There are also worries that the Fed could slow the pace of its rate cuts, the FX strategist says. A Fed rate cut in December now has less than 50% probability as Fed officials continue to "paint a clear division in opinions," Wong adds. USD/SGD is 0.2% higher at 1.3006, LSEG data show. (ronnie.harui@wsj.com)

The Singapore dollar strengthens slightly against its U.S. counterpart during the Asian session. Risk appetite has improved following the U.S. Supreme Court's skepticism about President Trump's reciprocal tariffs and Republican setbacks in state elections, DBS Group Research's Philip Wee says in commentary. These developments could open the door to ending the U.S. government shutdown, the senior FX strategist says. USD/SGD is 0.1% lower at 1.3056 after touching 1.3086 on Wednesday, the highest intraday level since May, LSEG data show. (ronnie.harui@wsj.com)

The Singapore dollar consolidates against its U.S. counterpart in the Asian session, but may be weighed by risk-off sentiment prompted by regional equity-market losses. "The greenback's current firmness looks more like a squeeze than a new uptrend," DBS Group Research's Philip Wee says in commentary. Meanwhile, focus will probably return to a softening U.S. labor market implied by high-profile corporate layoffs once the government shutdown ends and U.S. data releases resume, the senior forex strategist says. USD/SGD is little changed at 1.3073 after earlier touching 1.3086, its highest intraday level since May, LSEG data show.(ronnie.harui@wsj.com)

The Singapore dollar weakens against its U.S. counterpart as traders parse mixed Fed officials' remarks overnight. Fed Gov. Cook mentioned that she sees risks of job weakness being greater than inflation pick-up, while San Francisco Fed President Daly said she would want to "keep an open mind" about a December rate cut, Maybank analysts note. The comments highlight somewhat differing opinions among Fed officials, the analysts say in a FX Research & Strategy report. The lack of unison among them isn't making it any easier for markets to determine if a December rate cut would occur, the analysts add. USD/SGD is 0.1% higher at 1.3058 after earlier touching 1.3066, the highest intraday level since mid-May, LSEG data show. (ronnie.harui@wsj.com)

The Singapore dollar has the potential to reach parity with the U.S. dollar by 2040, say DBS economists in a report. A likely weaker U.S. dollar, Singapore's steady productivity-led growth and safe-haven capital inflows are among reasons that could drive Singapore's currency to appreciate, say Taimur Baig and others. They believe the U.S. dollar--which they estimate to be stronger than justified based on fundamentals across currency fair-value metrics--could enter a multiyear period of correction. Meanwhile, safe-haven flows into Singapore's financial sector could grow in the coming years as the city-state aims to attract more investments and deepen its capital markets, they add. USD/SGD is 0.1% higher at 1.2990, LSEG data show. (megan.cheah@wsj.com)

The Singapore dollar is steady against its U.S. counterpart in the Asian session, supported by optimism over U.S.-China trade talks. President Trump has said an upcoming in-person meeting with Chinese President Xi would yield a "good deal" on trade, CBA's Carol Kong says in a research report. However, there's a possibility that the meeting between them may not occur, Kong says. "Given the many issues at play, we consider an extension to the deadline for a trade deal is more likely than a comprehensive trade agreement," Kong adds. USD/SGD is little changed at 1.2979, LSEG data show. (ronnie.harui@wsj.com)