Singapore: Downside risks in rates - ANZ
|Irene Cheung, analyst at ANZ, suggests that they see a growing risk that the Monetary Authority of Singapore (MAS) could stay put at their April policy review, guided by a more global and regional central banks taking a dovish turn.
Key Quotes
“We will watch February CPI data due on 25 March for further cues.”
“A sustained rise in USD/SGD forward points since late December suggests that the market has been pricing out further tightening by the MAS in April. This has helped underpin the swap-offered rate (SOR), lagging the USD Libor in its down-move.”
“Since we think it is highly unlikely that the MAS will ease policy in April, there is limited further upside risk in USD/SGD forward points. We expect SOR to ease over time.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.