Singapore: Downside risks in rates - ANZ

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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