|

SGD: MAS tightening path supports currency – Standard Chartered

Standard Chartered’s Edward Lee and Jonathan Koh expect the Monetary Authority of Singapore to steepen the SGD NEER slope by 50bps in April, partially reversing pre-emptive easing from H1-2025 while keeping the band unchanged. They highlight higher Oil prices, increased inflation forecasts, and Singapore’s safe-haven status, and prefer to fade dips in SGD NEER around 1.0–1.5% above the policy mid-point.

MAS stance underpins Singapore Dollar

"We expect the Monetary Authority of Singapore (MAS) to steepen the SGD NEER slope by 50bps in April to +1.0% per annum, while keeping the centre and the +/-2% policy band unchanged."

"Reflecting higher oil prices, we raise both our core and headline inflation forecasts for 2026 to 2.5% from 1.5% previously."

"On balance, we expect the MAS to first partially remove 2025’s pre-emptive easing and then assess the evolving Middle East situation."

"We maintain our constructive outlook on the SGD versus regional peers."

"As a result, we prefer to fade dips in SGD NEER at c.1.0-1.5% above the mid-point of the policy band."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD breaks below 100-day SMA after hot US inflation data

The Australian Dollar weakens against the US Dollar on Thursday after encountering a key resistance confluence at the 50- and 200-day SMAs, while strong US data reaffirmed the economy’s strength, which could increase the chances of higher interest rates. The AUD/USD trades at 0.7020.


USD/JPY treads water near 158.00 ahead of BoJ

USD/JPY navigates an inconclusive range around the 158.00 neighbourhood ahead of the opening bell in Asia on Friday. Indeed, the pair alternates gains with losses following Wednesday’s decent pullback as investors gear up for the imminent interest rate decision by the BoJ. In the meantime, market consensus expect the central bank to keep its hands steady.

Gold falls to near $4,000 as US PCE data reinforces December Fed hike odds

Gold price falls to around $4,015 during the early Asian session on Friday. The precious metal loses ground as US inflation data reinforced expectations ‌of a Federal Reserve interest rate hike later this year.

Bank of Japan to leave interest rates steady at 1.25%

The Bank of Japan is set to announce its monetary policy decision on Friday at around 02:30 GMT. Like the Federal Reserve, financial markets are confident that the BoJ will leave interest rates unchanged, after raising them by 25 basis points to 1.25% in the September policy meeting. This is the highest interest rate level seen in 31 years in Japan.

Ethereum dips as US PCE inflation reinforces December rate hike

Ethereum fell below $2,300, down 4.8% on Thursday following a rise in US Personal Consumption Expenditure inflation. The PCE Price Index climbed 0.5% MoM and 3.6% YoY in September, matching market forecasts. Core PCE, which excludes volatile energy and food prices, increased by 0.3% monthly and 3.1% yearly, also in line with expectations.

A hot US economy is supposed to sink Gold. It didn't. Here's why
Gold (XAU/USD) remains under pressure near $4,000, as stronger-than-expected United States (US) economic data reinforce expectations of another Federal Reserve (Fed) interest rate hike in December. Economic growth is accelerating, inflation remains elevated, and borrowing costs could rise further.