26 Mar 2014
SGD faces potential downside - ANZ
FXStreet (Barcelona) - Khoon Goh, Senior FX Strategist at ANZ, expects the SGD to lose more ground in the coming periods.
Key Quotes
"We expect MAS to maintain their current policy stance for a modest and gradual appreciation of the S$NEER at its upcoming April Monetary Policy Review (most likely date is 11 April), with no change to the slope and width of the policy band, as well as the level at which it is centred."
"MAS remains vigilant towards potential cost-push pressures stemming from a tight labour market, despite recent declines in inflation."
"While economic growth was stronger than expected towards the end of last year, the ongoing restructuring of the Singapore economy may limit the upside in growth this year."
"Overall, we see little reason for MAS to alter current policy settings. Despite this, we expect SGD to depreciate this year, based on our view that the USD will strengthen as the US economic recovery gathers pace following recent weather- induced weakness."
Key Quotes
"We expect MAS to maintain their current policy stance for a modest and gradual appreciation of the S$NEER at its upcoming April Monetary Policy Review (most likely date is 11 April), with no change to the slope and width of the policy band, as well as the level at which it is centred."
"MAS remains vigilant towards potential cost-push pressures stemming from a tight labour market, despite recent declines in inflation."
"While economic growth was stronger than expected towards the end of last year, the ongoing restructuring of the Singapore economy may limit the upside in growth this year."
"Overall, we see little reason for MAS to alter current policy settings. Despite this, we expect SGD to depreciate this year, based on our view that the USD will strengthen as the US economic recovery gathers pace following recent weather- induced weakness."