IBTimes UK

The last week of May is likely to prove crucial for the Singapore dollar and other financial markets with two important data points scheduled for release.

The April consumer price data is due on 23 May at 5:00AM GMT (1:00PM Singapore) and the final Q1 gross domestic product data will be out on 25 May.

The Singapore consumer prices fell for the 17th straight month in March as per last month's data and that recorded the longest stretch of deflation in the City. The headline CPI index was down 1% year-on-year in the third month of the year.

Investors will be seeking for further policy signals from the prices data this time as the last month's surprise policy easing by the Monetary Authority of Singapore (MAS) has not yielded sufficient result according to many analysts.

The MAS flattened the appreciation rate of the Singdollar against the US dollar to 0% on 15 April after which the local dollar has weakened a mere 1.3% against its US counterpart. Still, the SGD is 2.6% firmer than where it was at end of last year.

The MAS adjusts SGD exchange rate vs greenback in order to address inflationary challenges in the exports-driven economy.

According to the preliminary release published on 14 April, the Singapore economy expanded 1.8% year-on-year in the first three months of 2016 which was an unchanged reading from the previous two quarters.

Analysts do not expect any change in the final print.

The Singapore dollar has been falling against the US currency for the past three weeks and at Friday's close of 1.3817, the Singdollar was down 2.3% so far in May mainly dragged by the broad-based rally by the greenback.

IBTimes UK