News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Well, I don't think Powell will temper interest/concern around central banks having to pullback in the foreseeable future. Both 'taper tantrum' and 'operation twist' search interest charging higher: https://t.co/NK17S328F3
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.86% FTSE 100: -1.20% France 40: -1.27% Wall Street: -2.32% US 500: -2.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/KjNr7ongtX
  • Nasdaq now down over 3% today, confirming 10% correction territory. $QQQ
  • $USDCHF has continued to strength today, now above the 0.9280 level, trading around the highs hit in late September. The pair has performed strongly since mid February as US rates have continued higher, rising from 0.8900 by nearly 400 pips to its current levels. $USD $CHF https://t.co/qrHY8Sy2sf
  • Against the backdrop of rising bond yields, both the Bank of England and European Central Bank will meet over the next two weeks. Get your market update from @CVecchioFX here:https://t.co/bcdEfLJjJ7 https://t.co/vXmdohw4VK
  • Oil - US Crude IG Client Sentiment: Our data shows traders are now at their least net-long Oil - US Crude since Jan 06 when Oil - US Crude traded near 5,008.80. A contrarian view of crowd sentiment points to Oil - US Crude strength. https://www.dailyfx.com/sentiment https://t.co/5dv539nKye
  • US Indices are struggling again today. The Nasdaq is now down 10% from the record highs of mid February, entering correction territory. The $VIX has risen to its highest level since last week's bond market event. DOW -1.31% NDX -2.37% SPX -1.48% RUT -2.68% $DIA $QQQ $SPY $IWM https://t.co/VKbWrCcymL
  • #Bitcoin battle-lines drawn. . . Updated 240min $BTCUSD https://t.co/epcJWYYoQh https://t.co/duPBPAM0Ps
  • Overall, Powell sticks with the current Fed stance and hence the move with the USD and UST yields higher, while gold tests 1700 https://t.co/78ds2uS2i9
  • #Gold is hitting fresh nine-month low in the aftermath of Fed Chair Powell's speech, falling to currently trade right around $1,700 for the first time since June of 2020. $XAU $GLD https://t.co/6OJ5Fn4Kn8
USD/SGD 1Q Forecast: US Dollar at Risk to Singapore Dollar Amid Hunt for Yield in Emerging Markets

USD/SGD 1Q Forecast: US Dollar at Risk to Singapore Dollar Amid Hunt for Yield in Emerging Markets

Daniel Dubrovsky, Strategist

USD/SGD 1Q Forecast: US Dollar at Risk to Singapore Dollar Amid Hunt for Yield in Emerging Markets

Advertisement

The Singapore Dollar may continue its advance against the US Dollar in 2021 as capital keeps flowing into Emerging Markets. Things initially weren’t looking well for SGD during the peak of the coronavirus outbreak, especially considering Singapore’s externally-focused economy. The island-nation is expected to see growth contract 6% in 2020. In fact, Singapore’s benchmark stock index, the Straits Times Index (STI), spent most of its time in 2020 lagging behind its regional peers’ equities, such as in China and India.

What makes USD/SGD unique – apart from how the Monetary Authority of Singapore conducts policy – is its sensitivity to broader risk appetite. Below, I have highlighted the consistent inverse relationship between the pair and the SPDR S&P Emerging Asia Pacific ETF (GMF). Investors poured capital into the latter as US financial conditions and APAC 2021 growth expectations improved, pushing the GMF to all-time highs. This is as the Singapore Dollar rose to its strongest against the anti-risk US Dollar since 2018.

There are a few things that I think will keep USD/SGD under pressure in 2021. These are better handling of Covid in the APAC region as a vaccine/s becomes available, investors searching for yield in a zero-interest-rate environment and a departure from what has been the tense, confrontational approach for the US against China in the form of trade wars. President-elect Joe Biden will likely keep the latter on their toes due to domestic pressure, but what is appearing to be in a more strategically cautious angle that may keep volatility low.

USD/SGD – Monthly Chart

USD/SGD USDSGD 1 Month Chart vs Financial Stress Index, Emerging Asia Pacific ETF

Chart prepared by Daniel Dubrovsky, created with TradingView

Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Daniel Dubrovsky
Get Your Free Top Trading Opportunities Forecast
Get My Guide

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

DISCLOSURES