The USD/SGD currency pair has entered a consolidation phase in the afternoon Asian session, as trading activity is thin due to holidays in the U.S. and Japan. Analysts from Maybank anticipate two-way trading and a potential bullish retracement of the greenback. They will closely monitor the performance of the U.S. economy relative to other countries. Currently, USD/SGD is trading at 1.3404, slightly higher than Wednesday's closing price of 1.3400.
The USD/SGD recovered from daily lows and is trading with slight gains. The cautious posture of the Federal Open Market Committee (FOMC) and strong US Manufacturing and Services PMI figures have influenced the pair's movements. The US saw an uptick in manufacturing and services PMI data, with May's S&P Global Manufacturing PMI increasing to 50.9 and the services PMI accelerating to 54.8. Strong Jobless Claims figures suggest a resilient US economy, justifying the delay of rate cuts by the Fed. US Treasury yields have risen, signaling that markets are delaying the start of the easing cycle. The CME FedWatch Tool indicates that the odds of a rate cut in September have declined. Next week, the US will release April's Personal Consumption Expenditures (PCE) data. Technical analysis shows that the USD/SGD is treading in negative territory but a recovery is seen, suggesting that buyers are gaining ground.