Forex Investment and Currency Trading

SGD: MAS more aggressive than expected
 
The key event overnight was a surprise tightening of policy by the MAS, through a re-centering of the SGD NEER to the prevailing level, representing an effective 1% upward revaluation.
  
Today, the MAS re-centred the SGD NEER to the prevailing level and changed its stance to one of “modest and gradual appreciation”. The central bank will target 2% appreciation in the SGD NEER. A contributing factor to the MAS decision was the strong Q1 GDP print - the economy grew at a 32% annualised rate - but the government also issued a more optimistic appraisal of global [...]

Euro
The euro is marginally lower this morning as USD performance remains mixed.  However, as there were no major economic releases or events with many players still in the Easter holiday, moves seemed to be exaggerated by very illiquid market conditions.  A FT article about the debt-deflation dynamics in Greece, stating that the country will eventually default, did little to rattle the currency.  The current risk environment is supportive of EUR today and may allow EUR to claw back early losses. 
GBP
GBP sharply rallied in the early morning session.  Chancellor of the Exchequer Darling said “we must, must get our borrowing down,” [...]

USDJPY has breached trend line resistance levels, but this move has been helped by a sharp decline in
EURUSD. The lower EURUSD has not only been driven by EUR specific factors such as Portugal’s downgrade by Fitch, but also by USD supportive effects coming on the back of China reporting its first trade deficit since 2004 (reported yesterday). China has focused its economic rebound on domestic demand which has been particularly supported by infrastructure investment. The shift away from export driven towards domestic demand driven growth suggests China’s currency reserve growth is running at a slower pace. The slower currency reserve [...]

The euro remains under pressure after Wednesday’s attempt to rebound was quickly reversed. The latest German data (weak reading of the factor orders data with a -2.3% m/m print for November) is added to the negative outlook. Also the German government has suggested that it is assuming the ECB will keep interest rates at the record low of 1% through to 2013 (market expects a cautious approach from the ECB at today’s meeting). Market now expects EURUSD to test the major medium term support in the 1.3730/10 area.
The broader picture for the euro also remains bearish with the EC endorsement of [...]