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22 May 2014
USD/SGD: Neutral bias - Westpac
FXStreet (Bali) - The SGD bias against the USD remains neutral, notes Westpac's FX Strategist Jonathan Cavenagh.
Key Quotes
"USD/SGD remains somewhat on the sidelines, with the pair largely in a 50-60 point range over the past few weeks. Our SGD NEER estimate has drifted lower over the past few weeks but only to a modest degree."
"To a large degree, this reflects the move lower in SGD/MYR, which is a trend we expect to continue for the next few weeks."
"Still, the growth outlook for Singapore is reasonable positive, with the consensus estimate being revised higher in recent months, despite continued concerns around the China slowdown."
"Indeed crosses like EUR/SGD are threatening to break down through multi-year uptrend channels. The bottom line for us is that we would be looking at other USD/Asia pairs to express a more upbeat USD view."
Key Quotes
"USD/SGD remains somewhat on the sidelines, with the pair largely in a 50-60 point range over the past few weeks. Our SGD NEER estimate has drifted lower over the past few weeks but only to a modest degree."
"To a large degree, this reflects the move lower in SGD/MYR, which is a trend we expect to continue for the next few weeks."
"Still, the growth outlook for Singapore is reasonable positive, with the consensus estimate being revised higher in recent months, despite continued concerns around the China slowdown."
"Indeed crosses like EUR/SGD are threatening to break down through multi-year uptrend channels. The bottom line for us is that we would be looking at other USD/Asia pairs to express a more upbeat USD view."