The online brokers are hopeful about the recovery of the Singapore economy as the government plans to open its borders as the authorities ease restrictions. This step will likely give the Singapore economy a big jump in growth.
The Singapore authority announced that its international borders will be opened soon and this process will bring growth to the economic activities within the country after the COVID-19 measures are lifted. Some analysts see the GDP growing by three to four percent from workplaces.
Meanwhile, international traveling can also add about four percent to GDP and the central bank can set the stage for monetary policy due to the tight labor market, rise in global commodity prices, and domestic inflation pressures.
The COVID-19 measures are reduced by Singapore’s authorities as fully vaccinated travelers and non-fully vaccinated children below age 12 can enter Singapore without applying for entry approval starting from April 11, 2022. According to Tan, “it pave way for good macroeconomic activity”, and it will attract more investors and foreign direct investments. This step will cement some of the safe-haven statuses that Singapore has.
FOMC MEETING MINUTES
The report from the FOCM meeting will be focusing on in-depth insight into the country’s economy and the financial conditions that are happening within the country. The committee will decide on the steps to take and vote on where to set the Interest rates.
The FOMC meeting is scheduled to hold about 8 times this year and 3 weeks after the Federal Funds Rate is announced. If the outcome of the meeting is more hawkish than excepted, it is good for the US dollar.
USDSGD Technical Analysis
Long term Price Analysis
Monthly Outlook: Down Swing Slowing within Significant Support Area
Monthly Resistance 1.38000, 1.36500.
Monthly Supports 1.34150, 1.31460,
The USDSGD pair is still consolidating on the monthly chart as the price could not break out below the support level of 01 September 2021 (1.33801) since the year began. The February low of 2022 could not close below the zone before the Singapore brokers who had a long position could dominate the zone for the price to go up.
The USDSGD pair has not shown much bullish momentum either as the price moves up slowly on the monthly chart. The bulls will need to close above the resistance level of 1.37000 for the price to have an upward run.
Weekly Resistance Levels: 1.37000, 1.37450.
Weekly Support Levels: 1.35290, 1.34000.
The USDSGD pair established a support zone when the price formed a harmer candlestick as of 7th and 14th February 2022 respectively around the 1.34000 zones. The Bullish surge of the 21st and 28th run shows that the buyers are in control of the market.
You can also see that the price has respected the current support level in the past three weeks as the price could not close below the support zones of 1.35290.
A breakout below the zone will take the price to another low of 1.34000 but if the price sees rejections around the support level, the price will likely surge higher and a breakout above the resistance level of 1.37000 will take the price to another higher zone.
Daily Outlook: Bearish
Daily Resistance Levels: 1.36070, 1.37434.
Daily Support Levels: 1.35225, 1.34500.
Ukraine and the Russian war are also having effects on the Asian currencies and the financial market as the war has gone into its 5th week. you can see that the USDSGD pair has not broken out of the range. Also, the brief gotten from the US Treasury yield curve and the recession risk weakened most currencies in Asia.
On the daily chart, we can see that the USDSGD pair made about a 0.24% gain against the US dollar at the time of writing this report. If the resistance zone of 1.36250 continues to repel the price around the zones, we may see the price drop down towards the 1.35225 support area. A close breakout below the zone will expose the lower supports.
If the Singapore brokers should see the price breakout above the 1.36200 level the Bulls will dominate the zones and push the price to the 1.37000 zones.
The financial market started with the continuation of the Bulls’ dominance and a close above the resistance level of 1.36200 will put the Singapore brokers on a bullish run as the week progresses.
The Bearish scenario can come to play if they can take over the resistance level of 1.36200 and close below the 1.35225 support for the USDSGD pair to continue the downtrend on the daily chart.
Some analysts are of the opinion that Singapore’s Monetary Authority may likely roll out fairly tight policies in April following an easing of COVID-19 measures. The reopening of the international border and international travel will also contribute to the GDP of the Singapore economy.
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