Singapore: Growth upgrade supports MAS stance – UOB

💡 DMK Insight

Singapore’s GDP upgrade is a big deal for traders, especially in the forex market. With 4Q25 GDP revised sharply higher, the full-year growth forecast for 2025 now sits at 5.0%. This positive economic outlook could strengthen the Singapore dollar (SGD) against major currencies, particularly if the trend continues into 2026 with an upgraded forecast of 3.6%. Traders should watch for potential bullish momentum in SGD pairs, especially against the USD and JPY. If the SGD strengthens, it could impact export-driven sectors and related equities. However, it’s worth noting that while this growth is promising, traders should remain cautious. A sudden shift in global economic conditions or unexpected monetary policy changes could dampen this optimism. Keep an eye on key economic indicators and central bank communications for any signs of volatility. For now, monitor the SGD/USD pair closely; a break above recent resistance levels could signal a stronger bullish trend.