Updating SGD NEER index

The SGD NEER itself has held comfortably above the midpoint of the trading band since 24 April, on Barclays's estimates, amid a significant paring back in market expectations for further MAS easing following the 14 April Monetary Policy Statement. Analysts viewed the tone of the April MPS as reducing further the risk of an additional policy change by the MAS, and believe additional changes to the SGD NEER policy band would only occur in the event of a significant darkening in the growth outlook. 

With macro data if anything coming in slightly stronger than expectations recently, the SGD NEER could continue to trade above the midpoint in the near term, though it is likely to move back to slightly below mid in the months ahead - closer to where its fair value is seen.

The SGD NEER index has continued to track the MAS' index very closely, with the updated weights producing a standard deviation of just 6.9bp since 2009. 
The slope of the SGD NEER to be appreciating at an annual pace of 1.5%, and the width of the band at +/-2%", according to Barclays.