On December 5th during the Asian session, the USD/SGD exchange rate fluctuated narrowly around 1.2955.

What is the market waiting for? Next week’s Federal Reserve interest rate decision. The U.S. Department of Labor just released data—last week’s initial jobless claims fell to a three-year low. At first glance, this number seems contradictory: the employment data is good, but analysts at Commerzbank point out that signs of a softening labor market are actually fueling rate cut expectations.

How should this be interpreted? The market may be betting that good data doesn’t mean the economy is overheating, so the Fed has room to adjust policy. The Singapore dollar has held steady for now, but real volatility will likely come after the Fed makes its statement. In the short term, the 1.30 level is worth watching closely.