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11 Aug 2014
Singapore Dollar: Further under-performance possible - Westpac
FXStreet (Bali) - SGD has already weakened back to the mid-point of the MAS band, with further underperformance possible once a pullback to 1.2450 sees fresh long positions re-established, notes Westpac.
Key Quotes
"The weaker domestic backdrop for Singapore and the softer trend for EUR have finally caught up with SGD. The bounce in USD/SGD from just below 1.2370 level to 1.2550 has been impressive and got market positioning to a more neutral/slightly long setting."
"Further weakness may be harder to come by, particularly with our SGD NEER estimate getting back towards the mid-point of the MAS band. Still, we see no reason to sell USD/SGD and we expect dips back towards the 1.2450 level to be well supported."
Key Quotes
"The weaker domestic backdrop for Singapore and the softer trend for EUR have finally caught up with SGD. The bounce in USD/SGD from just below 1.2370 level to 1.2550 has been impressive and got market positioning to a more neutral/slightly long setting."
"Further weakness may be harder to come by, particularly with our SGD NEER estimate getting back towards the mid-point of the MAS band. Still, we see no reason to sell USD/SGD and we expect dips back towards the 1.2450 level to be well supported."