Neither side has made a glittering start to the new season, with United throwing away late leads at both Fulham and Everton.
Now Giggs admits they can use Sunday's match could ignite their season.
"The crowd will light up," said the United legend. "It's usually a quick game and it's usually a ferocious game, so hopefully it's the kind of game that sets us back on the winning trail.
"No matter how the teams are doing, it's always the big game of the season. It's always the one you look forward to, the atmosphere will be brilliant here and all the players will be up for it.
"You just feel that intensity when you play Liverpool, no matter how they are doing.
"Chelsea and Arsenal are big games - but a local derby against Liverpool and the history between the two clubs makes it special.
"The Liverpool game is always important at United, but it is not going to make or break our season no matter what the result is.
"There's not a lot wrong. We should have won at Everton last week, so we are generally in good form I think.
"We just haven't finished teams off, just like against Rangers, when we were a bit sloppy at times."
Chelsea are already four points clear of United and Giggs admits they cannot afford to let them extend that further, saying: "That's probably been the case over the last six or seven years, so we're wary of that.
"I honestly feel we just haven't had the breaks.
"The concentration lapses are a concern, but we're not too far away.
"If we finish our chances off, we will be beating teams four or five nil."