We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • A recession is typically accompanied by falling stock prices, but equities are not the be-all and end-all for recession investment strategies. Get your market update from @PeterHanksFX here: https://t.co/H0Rf3AkECs https://t.co/5Il5ptMnMu
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/y2tXiYs9aV
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/H6I3MXjW06
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/ZsHdd9NFcO
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/TisnGYxllM
  • Here my weekend trading video 'Dow, VIX, Dollar and Gold: Levels and Volatility to Gauge the Markets' https://www.dailyfx.com/forex/video/daily_news_report/2020/03/28/Dow-VIX-Dollar-and-Gold-Levels-and-Volatility-to-Gauge-the-Markets-.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • #Silver and #gold prices have had a fascinating 2020, counterintuitively falling as the #coronavirus’ economic hit has become horribly apparent. A rebound is now afoot. Get your market update from @DavidCottleFX here: https://t.co/nng7lwQ22E https://t.co/JwehIVbBA2
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/mcq5Bq2Jui
  • The $USD soared against the Indonesian Rupiah, with USD/IDR eyeing its best month since the 1997-98 Asia financial crisis amid the #coronavirus outbreak. Can this trend continue? Find out from @ddubrovskyFX here:https://t.co/M3sDZOftrE https://t.co/sbIbp68UOh
  • The $USD may be at risk as technical signals show USD/SGD, USD/MYR and USD/IDR may turn lower. Ahead, the markets will likely weigh US fiscal stimulus bets against dismal data risk. Get your market update from @ddubrovskyFX here:https://t.co/iGqBrY6qyO https://t.co/kJ89YgK3Mm
USD/SGD: Singapore Dollar Looks to Global Trade, Risk for Direction

USD/SGD: Singapore Dollar Looks to Global Trade, Risk for Direction

2014-03-17 16:00:00
Gregory Marks,
Share:
USD/SGD - Singapore Skyline

Talking Points:

-Mixed 2014 data provides SGD support, but global trade will be watched

-Technical, fundamental setups favor USD/SGD higher in 2014 (via Kristian Kerr)

-Traders eye opportunities in any resumption of volatility to the pair

Singapore has the highest trade-to-GDP ratio in the world (407.9%) and price action in USD/SGD is highly dependent on long term outlooks for global trade and risk factors that could disrupt such trade. At the same time, the USD/SGD pair is not nearly as susceptible to volatility in comparison with other Asian currencies; the country is the only Asian nation with triple A credit ratings in addition to massive foreign exchange reserves (11th most in the world). As geopolitical risks make themselves heard in addition to credit market concerns developing out of China, it may be the time for traders to turn their attention to the pair.

Although day-to-day volatility may be light as of late, USDSGD may be setting up for large moves to the upside in 2014 (notes Kristian Kerr) as it continues to respect a descending triangle formation that started in 2011 in addition to fundamental factors noted here.

Last year may be remembered as the year of complacency, much like 2006 ahead of massive risk factors that made themselves known one after another like falling dominos in 2008. There is no denying that that risk factors remain in this overextended environment in many parts of the globe, especially in the East as China never experienced the deleveraging cycle that we saw in the West. In addition, the ability for the Bank of Japan to finally help Japan achieve economic growth and inflation figures near 2.0% is coming more and more into question as trade balance figures continue to indicate fresh record deficits.

USD/SGD Index Comparison Chart

Looking ahead, market participants may begin to view USD/SGD in a different light during 2014. Above is a standard inverse (SGD/USD) of the pair over the Baltic Dry Index. Being a major driver of the Singaporean economy, we can use the Baltic Dry Index as a proxy for global trade. Although the perception is slightly skewed due to Bunker fuel costs, periods of higher trade (as indicated by higher shipping costs) have proved beneficial for the Singaporean Dollar. A Chinese or Japanese slowdown during this or next year could certainly hit trade prospects hard and by extent the Singapore Dollar.

Singapore 2014 Data

Actual

Survey

GDP YoY (Q4 A)

4.4%

4.8%

PMI (DEC)

49.7

51.0

Retail Sales YoY (NOV)

-8.7%

-8.0%

Non-oil Domestic Exports (YoY) (DEC)

6.0%

1.0%

CPI YoY (DEC)

1.5%

2.0%

Industrial Production YoY (DEC)

6.2%

-1.4%

PMI (JAN)

50.5

50.1

Retail Sales YoY (DEC)

-5.5%

-6.8%

Non-oil Domestic Exports YoY (JAN)

-3.3%

-1.2%

CPI YoY (JAN)

1.4%

1.5%

Industrial Production YoY (JAN)

3.9%

6.5%

PMI (FEB)

50.9

50.3

Retail Sales YoY (JAN)

0.1%

-3.7%

Non-oil Domestic Exports YoY (FEB)

9.1%

7.1%

Upcoming

Date

CPI YoY (FEB)

3/24/2014 05:00GMT

Industrial Production YoY (FEB)

3/26/2014 05:00GMT

PMI (MAR)

4/02/2014 13:30GMT

GDP YoY (1Q F)

4/10/– 4/14/ TBA

USD/SGD March 17, 2014 YTD (1D Chart)

USD/SGD - Singapore Dollar US Dollar March YTD Chart

Source: FXCM Marketscope

Gregory Marks, DailyFX Research Team

Keep up to date on event risk with the DailyFX Calendar.

How does a Currency War affect your FX trading?

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.