The USD/SGD currency pair settled below recent high of 1.2907, its strongest level since August 1st, following a considerably slower than anticipated US job growth, which cemented expectations of a Federal Reserve interest rate cut this month.

Employers in all sectors of the US economy, excluding farming, added only 22,000 job positions in August, well below market consensus and the revised up 79,000 in July.

And, the unemployment rate went up to 4.3% in August, the highest since October 2021, from 4.2% in July.

The latest figures again highlighted signs of a cooling labor market.

Markets are now pricing in about an 88% chance of a 25 basis point Fed rate cut in September and a 12% chance of a 50 basis point cut.

Meanwhile, retail sales in Singapore surged 4.5% year-on-year in July, picking up from a revised up 2.4% increase in June, the latest data by Statistics Singapore showed.

It has been the strongest retail activity growth since January, driven by supermarkets & hypermarkets, watches & jewelry and computer & telecommunications.

The exotic Forex pair gained 0.07% for the week.