The USD/SGD is within the middle of its one week technical price range as nervousness pervades financial institutions dealing with difficult circumstances.
- The USD/SGD is near the 1.36200 ratio as of this writing, which is technically within the middle of its trading ground attained the past week.
- However, early moves this morning have seen the USD/SGD track higher as nervous energy continues to confront the currency pair.
- Manufacturing numbers from China this morning came in mixed, which means still troubled
Singapore banks are large Forex traders and they handle plenty of Chinese Yuan (CNY). The USD/CNY has seen an incremental bullish climb start to develop that is consistent. The prospect of a weaker Chinese Yuan creates exposure for the Singapore Dollar which certainly affects sentiment within the USD/SGD fundamentally. But the USD/SGD was trading at a low of 1.35850 yesterday which tested support levels produced since Thursday of last week, which was a slight sign of Singapore Dollar strength.
USD/SGD Traders are a Barometer for Global Forex
Traders should know that Singapore Forex is watched by experienced speculators around the globe as a barometer regarding behavioral sentiment. The high reached early yesterday in the USD/SGD reached the 1.36310 briefly, this before reversing quickly lower and falling beneath the 1.36000 mark. The volatility and spurts of bearishness seen in the USD/SGD reflect a belief perhaps that the currency pair remains overbought.
However concerns not only about China’s economy and its effect on Singapore, but shadows from the U.S Federal Reserve’s approaching FOMC meeting tomorrow are causing mixed trading. While financial institutions have accepted the notion the U.S Fed will not cut interest rates tomorrow or in June, there remains a hope that the Federal Funds Rate will be cut towards the late summer. Yet, because of mixed U.S economic statistics there isn’t a clear outlook.
Move Higher This Morning in the USD/SGD is Dangerous
As the USD/SGD tests higher ratios early this morning, some speculators may target yesterday’s apex values, but this may prove overly ambitious. But the short-term price range in the USD/SGD is likely to be challenged today and tomorrow with fast trading results. Financial institutions in Asia are being confronted by cautious winds from their central banks, yesterday’s Bank of Japan intervention is an example.
- The USD/SGD may appear too strong to many speculators, but the fact is the currency pair remains within the upper depths of its one month technical range.
- Support levels have proven rather durable around the 1.35900 to 1.35850 ratios the past week.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36295
Current Support: 1.36180
High Target: 1.36375
Low Target: 1.35945
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