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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.02%, while traders in Wall Street are at opposite extremes with 74.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Tt68HR25h
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/dOChzDPvBW
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.26% Oil - US Crude: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FgSiJ4PcT3
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇳🇿NZD: 0.27% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.05% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qhfolQdLUG
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.43% US 500: -0.70% France 40: -1.89% FTSE 100: -2.07% Germany 30: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HjUzIke5gV
  • ZEW economic sentiment soars in May. #zew #euro #eurusd @DailyFX https://t.co/jEIeoeotgq
  • 💶 ZEW Economic Sentiment Index (MAY) Actual: 84 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Current Conditions (MAY) Actual: -40.1 Expected: -41.3 Previous: -48.8 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Economic Sentiment Index (MAY) Actual: 84.4 Expected: 72 Previous: 70.7 https://www.dailyfx.com/economic-calendar#2021-05-11
Singapore Dollar Gains on MAS, GDP Beat. Will USD/SGD Breach Key Support?

Singapore Dollar Gains on MAS, GDP Beat. Will USD/SGD Breach Key Support?

Daniel Dubrovsky, Strategist

Singapore Dollar, USD/SGD, Monetary Authority of Singapore, MAS, GDP – Market Alert

  • Singapore Dollar gains on static MAS and solid local Q1 GDP data
  • USD/SGD likely catching up with recent weakness in the US Dollar
  • Eyes on key inflection point for chance to retest current 2021 lows

The Singapore Dollar advanced against the US Dollar following the Monetary Authority of Singapore (MAS) policy announcement and local first-quarter GDP data. The MAS largely left policy settings unchanged, as expected. Taking a look at the central bank’s approach to its currency, it left the slope (at 0% appreciation), width and center of the currency band unchanged.

The MAS primarily conducts policy by managing exchange rates rather than benchmark lending rates. It does this by adjusting SGD against an undisclosed basket of currencies, known as the Singapore Dollar Nominal Effective Exchange Rate. This is due to the city-state’s heavy reliance on trade, where a shifting currency can have more meaningful impact on local inflationary pressures, while also allowing for free capital flows.

Highlights from the MAS

  • An accommodative policy stance remains appropriate
  • Singapore’s economy will grow at an above-trend pace this year
  • Core inflation should rise gradually, but remain below its historical average
  • 2021 GDP growth may top the upper end of the 4% - 6% estimated range
  • Sees 2021 all-items CPI at 0.5% - 1.5%

Meanwhile, advanced readings showed that Singapore’s economy expanded 2.0% q/q versus 1.7% expected, and 0.2% y/y compared to -0.5% estimated. Commentary from the MAS and the GDP data continued to underpin Singapore’s recovery from the outbreak of coronavirus last year. Moreover, since the economy is heavily reliant on the external sector, the MAS inherently paints a rosy outlook for global growth.

The Singapore Dollar’s strength despite a static MAS may have been due to the passing of prominent event risk. USD/SGD was relatively flat over the past 24 hours despite a drop in Treasury yields and the US Dollar. Now that the MAS and GDP data are behind markets, the Singapore Dollar likely caught up with broader developments.

Despite faster-than-expected headline and core CPI data from the United States on Tuesday, dovish commentary from the Federal Reserve likely cooled fears about sooner-than-anticipated tightening. This may in the near-term keep Treasury rates from rising too swiftly, benefiting Emerging Markets and keeping capital outflows from picking up pace. As such, there seems to be scope for near-term declines in USD/SGD ahead.

USD/SGD 15-Minute Chart

Singapore Dollar Gains on MAS, GDP Beat. Will USD/SGD Breach Key Support?

Chart Created Using TradingView

Singapore Dollar Technical Analysis

USD/SGD is again pressuring the key 1.3375 – 1.3389 inflection zone, with the 50-day Simple Moving Average (SMA) sitting right below. A breach under these levels could open the door to extending losses, especially as the long-term 200-day SMA comes into play above. That would likely place the focus on the 1.3158 – 1.3189 support zone for another shot at resuming last year’s top.

USD/SGD Daily Chart

Singapore Dollar Gains on MAS, GDP Beat. Will USD/SGD Breach Key Support?

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES