Singapore: MAS to reduce the slope of SGD NEER by 50bps – Westpac

Sandeep Kanihama FXStreet Contributor

Frances Cheung, analyst at Westpac, expects the Monetary Authority of Singapore (MAS) to reduce the slope of its SGD NEER by 50bps, from a currently-assumed 1%, while keeping the centre and band width unchanged.

Key Quotes

“We also expect a dovish statement. Given the relatively high position of the SGD NEER with respect to the band (1.1% above midpoint), a reduction in the slope despite being priced in will still likely point to downside for SGD NEER. This is likely to translate into USD/SGD movement as room for SGD underperformance against regional peers may be limited, with the next resistance at 1.39.”

“If the day turns out to be a riskoff one, safe-haven flows will likely counteract the SGD reaction to MAS easing. The rates and forward curves, meanwhile, appear fairly priced.”

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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