Mitul Kotecha , senior emerging markets strategist at TD Securities, recommends to go long on the USD/SGD cross for the target level of 1.4125, while maintaining a stop loss of 1.3561 and entry being at 1.3749 for an expected 3m horizon.

Key Quotes

“Singapore's economy is highly trade dependent and exports (NODE) data released today were very soft, dropping by -10% y/y, with electronics exports down -16.3% y/y. The outlook remains weak, with Singapore's electronics PMI having been in contraction territory for 5 straight months.”

“Even if China's economic stability continues there is little sign that it is benefiting the rest of the region, with China's stimulus continuing to be largely domestically orientated. Singapore can't count on impetus from this source.”

“SGD remains closer to the top end of the SGD NEER band and has scope to weaken especially as the MAS seems unlikely to move to a tighter stance at its October meeting.”

“SGD is the most highly sensitive currency to CNY/CNH gyrations and like TWD is a good proxy for likely further CNY depreciation. Indeed headlines from Chinese media today suggest little chance of talks, let alone a deal with the US anytime soon.”

“Having broken above the 200 day moving average, the upper Bollinger Band, and trendline resistance (from 3 Jan 2017), we think USDSGD has scope to move higher. We target a move to the 9 May 2017 high at 1.4125.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Adds 8 pips in Asia, remains trapped in a bear flag

EUR/USD picked up a bid at 1.1084 at 00:00 GMT and rose to 1.1092 a few minutes before press time. As of writing, the currency pair is trading at 1.1089. The buyers failed to keep the pair above 1.11 for the third straight day on Wednesday.

EUR/USD News

GBP/USD: Struggles between 10/21-DMA amid bullish MACD

Despite reversing from the 21-day simple moving average (DMA), GBP/USD remains above 10-DMA as it trades near 1.2134 during Asian session on Thursday. Supporting the pair’s upside is a bullish signal by 12-bar MACD.

GBP/USD News

USD/JPY weaker near 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker near the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

The Fed Minutes are Out, but Does It Matter?

The FOMC July 31st Minutes were released earlier today and the collective market seems to think the minutes are less dovish than expected! Gold was volatile right before the release.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •