Forex Investment and Currency Trading

The Monetary Authority of Singapore (MAS) today eased its monetary policy stance by switching to a neutral policy of 0% appreciation of the Singapore dollar (SGD) Nominal Effective Exchange Rate (NEER) policy band in its latest monetary policy statement (MPS), after tightening two consecutive times in October 2007 and April 2008. There has been no re-centring of the policy band nor any change to its width. The shift in policy is based on weak growth expectations amidst a rapidly deteriorating external environment and worsening credit crisis. More recently, the barrage of rate cuts around the world at a time when [...]

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USD/SGD
Sport 1.36
3 month forecast - 1.35
6 month forecast - 1.34
12 month forecast - 1.32
The SGD was essentially steady in June after appreciating sharply earlier in the year after the Monetary Authority of Singapore’s (MAS) re-fixed the central rate within the policy band. Subsequently, the MAS reiterated that it would maintain its three-year-old policy of allowing a “modest and gradual” appreciation against a trade-weighted basket of foreign currencies. The appreciation is likely to help fight imported inflation. Market forecasts the currency to strengthen steadily over the course of the next 12 months.
Inflation soars: The CPI climbed 6.6% y/y in 1Q, the [...]

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Today the Monetary Authority of Singapore (MAS) announced a modest monetary tightening. In the twice yearly monetary policy statement (MPS) it maintained its FX stance of a “modest and gradual appreciation” of the Singapore dollar (SGD) nominal effective exchange rate (NEER) which had been “increased slightly” in the previous policy statement announcement in Oct-071. Also importantly, due to rising inflation risks, the central bank opted for a one-off re-centring of the SGD NEER policy band at the current level of the SGD NEER. The last time there was a re-centring was back in July-03, with the mid-point set at the [...]

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Singapore will be releasing the advance GDP estimates for Q1-08 and the semi-annual monetary policy statement on 10th April 2008. Even though a technical recession is not expected, the slower growth momentum in certain sectors is likely to see GDP growth moderate. Singapore’s January CPI inflation came in much higher than expected, the highest in nearly 3 decades. While inflation did moderate slightly in February, food and oil related increases still remain significant. However importantly, domestic sources of inflation are also clearly present and these domestic sources cannot be adequately addressed by a strong Singapore dollar (SGD).The Monetary Authority of [...]

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