Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

USD/SGD likely to trade lower in line with rebound in EUR and CNH, says Scotiabank

The USD/SGD currency pair is expected to trade lower in line with a rebound in the EUR and the CNH, according to the latest research report from Scotiabank. The SGD has been running a close correlation with the EUR and the CNH, as high as 77 percent and 74 percent respectively over the past 12-month period.

It is due to the MAS-managed S$NEER basket in which the EUR carries a large weighting. The recent SGD depreciation is attributable to weak Eurozone data and mounting concern over US-China trade talks.

In addition, foreign investors have purchased a net CNY42.8 billion and CNY35.6 billion of Shanghai and Shenzhen stocks respectively year-to-date, via the two stock-connect schemes.

As China will further open up its domestic capital markets, continued portfolio inflows could boost the yuan, particularly if China successfully eases trade tensions with the US, the report added.

Moreover, Fed Chairman Jerome Powell is likely to reiterate his dovish stance when testifying before the Senate and the House respectively on February 26 and 27.

"We would like to sell USD/SGD now with a target of 1.340 and stop of 1.365. The pair declined after hitting the 38.2 percent retracement of the fall from November 2018 to January 2019," Scotiabank commented in the report.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

May 24 19:00 UTC Released

USCattle Marketed

Actual

106.9 %

Forecast

106.6 %

Previous

97 %

May 24 19:00 UTC Released

USCattle Placed On Fd

Actual

108.7 %

Forecast

113 %

Previous

105 %

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 704116704116m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 704116704116m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 692296692296m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.