The Singapore Purchasing Managers’ Index (PMI) fell to 50.7 in February from 50.9 in January. This decline indicates a slower expansion within the manufacturing sector.
In the broader market, EUR/USD recently recaptured levels above 1.0450 after Euro area inflation data showed a 0.6% month-on-month increase in February. GBP/USD also gained momentum, surpassing 1.2650 due to a weakening US Dollar.
Gold Prices Rebound
Gold prices rebounded above $2,870, recovering from a low of $2,830, amid concerns related to the Russia-Ukraine conflict and pending US tariffs on multiple countries.
The dip in Singapore’s PMI tells us that the manufacturing sector is still growing, just not as quickly as before. A reading above 50 generally means activity is expanding, but the slowdown hints at weaker demand or production challenges. Businesses involved in this space should be mindful of shifting conditions as even a modest cooling can ripple through supply chains and weigh on decision-making.
On the currency front, the euro regained ground after inflation figures from the Eurozone showed higher-than-expected monthly growth. Price pressures like these often fuel speculation about future interest rate moves, which can add volatility to trading strategies. Sterling also climbed, helped in part by weakness in the dollar. A softer greenback improves sentiment around other currencies, but such gains tend to be fragile, especially if economic data out of the US shifts expectations around rates.
Geopolitical And Trade Risks
Meanwhile, gold prices bounced back from earlier lows. The metal often reacts strongly to geopolitical uncertainty, and with tensions still heightened, demand for safe-haven assets could stay firm. Talks of potential trade measures from the US add another layer of risk, which may feed into further price swings. Those tracking commodities closely should keep an eye on global developments, as they could influence short-term movements as well as longer-term trends.
