According to the preliminary report released by Singapore’s national statistics office, the local GDP grew by 25 in Q4 2015 relative to 1,8% in Q3 2015. It should be noted that analysts had expected 1,3%, which leads us to believe that the report came out much stronger than expected.
In the meantime, the local service sector slowed down its growth - 3.2% in Q4 2015 relative to 3.4% in Q3 2015. The biggest driving force in the service sector was financial services, insurance as well as retail and wholesale trade. The local construction sector gained 2,2% over the same reporting period. The construction sector mostly gained from public construction orders.
A negative tendency was seen in the industrial sector. The sector shrank by 6% in Q4 2015, thereby continuing the dynamics seen over he previous reporting period. The given decline was caused by lower production of electronics as well as various equipment.
With that being said, Singapore’s economy is still showing one of the lowest paces of growth seen over the last couple of years. Even despite gaining 5,7% in Q4 2015, the year-over-year GPD growth (preliminary figures) is just 2,1%, which is the lowest pace of GDP growth since 2009.
FOREX
In the meantime, Masterforex-V Academy reports that the Singaporean Dollar is still lowing its value versus the U.S. Dollar, which means that USDSGD is still rallying. At this point, it is trading around 1,4409. The closes major levels of resistance are 1,4478/1,4514 and 1,4607/59. Alternatively, the price may reverse the downtrend only if it breaks and consolidates below the bottom of the ascending MF sloping channel and pivot 1,4030.
