USD/SGD settles below 8-week high, posts weekly loss

The USD/SGD currency pair settled below recent high of 1.2951, its strongest level since August 1st, after data showed US services sector activity had unexpectedly stalled in September.

The ISM Services Purchasing Managers’ Index dropped to 50.0 in September from 52.0 in August.

The latter came after earlier data by ADP showed US private payrolls had decreased by 32,000 in September following a revised down 3,000 drop in August.

The ongoing US government shutdown hampered public economic activity, risked job cuts and delayed crucial economic data, including the Non-Farm Payrolls report, ahead of the upcoming Federal Reserve policy meeting.

Markets are now pricing in about a 98% chance of a 25 basis point Fed rate cut in October and an 87.5% chance of another 25 bps cut in December.

Meanwhile, retail sales in Singapore surged 5.2% year-on-year in August, picking up from a revised down 4.6% increase in July, the latest data by Statistics Singapore showed.

It has been the strongest retail activity growth since February 2024.

The exotic Forex pair lost 0.19% for the week.