12 Jan 2015
Singapore Dollar: Bearish stance - Westpac
FXStreet (Bali) - Westpac FX Strategists remain bearish SGD against both the USD and the rest of Asian currencies, with the bank noting that easier financial conditions could be delivered via a shift in the SGD NEER stance.
Key Quotes
"Our SGD NEER estimate got close to -1% from the mid-point of the band on Friday ahead of the non-farm payrolls report. We have since eased back to -0.60/0.70% from the mid-point of the band, as USD/SGD has moved back to the low 1.3300 region. A further USD correction could see USD/SGD lower from current levels."
"However, support between the 1.3200/1.3250 region should hold, particularly as speculation mounts of a possible MAS easing at the next MAS meeting in April."
"We see evidence of tighter domestic financial conditions, with lending rates continuing to push higher (which is in line with higher funding costs). Easier financial conditions could be delivered via a shift in the SGD NEER stance. Such an outlook should still leave the market inclined to buy dips in the pair."
Key Quotes
"Our SGD NEER estimate got close to -1% from the mid-point of the band on Friday ahead of the non-farm payrolls report. We have since eased back to -0.60/0.70% from the mid-point of the band, as USD/SGD has moved back to the low 1.3300 region. A further USD correction could see USD/SGD lower from current levels."
"However, support between the 1.3200/1.3250 region should hold, particularly as speculation mounts of a possible MAS easing at the next MAS meeting in April."
"We see evidence of tighter domestic financial conditions, with lending rates continuing to push higher (which is in line with higher funding costs). Easier financial conditions could be delivered via a shift in the SGD NEER stance. Such an outlook should still leave the market inclined to buy dips in the pair."