Weekly Analysis for Singapore Brokers
Regarded as a highly advanced and free market country, Singapore’s economy is renowned for its stable product prices as well as corruption free environment. Thus, SGD or the Singapore Dollar provides much scope for speculation to both the traders as well as the Singapore brokers. Singapore’s economy has always had a very high rate of interest, limited capital controlling measures and higher rate of growth. In fact, its ever expanding financial services segment has transformed the country into one of the prominent financial hubs across Southeast Asia. The above are some of the major reasons why the traders and the brokers are always keeping a track of the performance of the Singaporean dollar, especially against the USD. Here, take a sneak peak at the weekly outlook for the USD/SGD pair.
As far as the USD/SGD is concerned, on Thursday the pair was trading in the range of 1.3606 and 1.3607. The pair witnessed significant drop in the past week even as it traded 0.50% higher at 1.3606 and 1.3679 on 26th October and later dropped by 0.12% at 1.3675 and 1.3716 on the 27th October.
At the beginning of October, the SGD had dropped to its 7 month lower price, even as the country’s economy contracted unexpectedly in the 3rd quarter. In fact, immediately after the market received the news of Thailand’s revered and renowned King Bhumibol Adulyadej’s death, brokers and traders witnessed a rise in the Thai baht THB. However, contrary to the market expectations the MAS or Monetary Authority of Singapore did not change its monetary policy in the month of October. In fact, in view of the extremely disappointing Global Domestic Production figures and depressing global news and outlook, the SGD dropped by as much as 0.6 percent to 1.3894 as opposed to the USD. This was the pair’s weakest performance since 4th of March 2017.
According to Singapore brokers and analysts, almost all the Asia based currencies are likely to drop even as the USD gains strengths in the wake of the Fed’s plans of hiking the rate of interest in the month of December. In the days to come, traders will continue to prefer USD over SGD, especially ahead of Fed’s December meeting.
As far as the USD is concerned, the currency has been gaining strength since last week. The US Dollar advanced to a 3 month higher figure after the market began speculating that the Fed would hike the rate of interest and the U.S. government would pave way for tax reduction. It must be noted that Trump is planning to introduce new fiscal stimulus that may further boost inflation and force the central bank in the U.S. to get into a sharp rate hiking cycle. Next week, the market will also be keeping an eye on the FOMC’s policy meeting outcome, PMI index as well as the employment figures for the month of October to see how the USD/SGD pair moves further.
Traders who’ve held the Singapore Dollar can expect a further drop in its prices. In fact, according to financial and trading experts, the SGD may expect depreciation in the range of 2-3%
Our Recommended Singapore Brokers to trade USDSGD:
Best Regulated Broker
IQ Option is the world’s leading EU regulated financial broker based with a revolutionary platform for all traders. Read IQ Option review
- Best Trading App for Binary Options
- Minimum Deposit of only $10
- Minimum Trade of $1
- Trusted Broker
- $1,000 Virtual Funds ( Demo Account )
- Quick Withdrawals
- Outstanding Platform
- Weekly Tournaments
- Gain up to 92%*
Top Uk Broker
HighLow is a Top binary options broker in UK with a simple trading platform and free demo account. Read High Low review
- Fast Withdrawals
- Only £50 Minimum Trade
- Regulated Broker by ASIC-Australia
- Bonus £50 Cask-back
- Free Demo
- Up to 200% Return
Your capital may be at risk. This material is not investment advice
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
Latest posts by James Martin (see all)
- BTCUSD – Weekly outlook for Bitcoin Price – November 21 2019 - November 21, 2019
- USDSGDWeekly outlook for Singapore Dollar – November 14 2019 - November 14, 2019
- BTCUSD – Weekly outlook for Bitcoin Price – November 7 2019 - November 7, 2019