USD/SGD: To trade lower in a 1.25-1.30 range – DBS
Source Fxstreet
Today, the Monetary Authority of Singapore’s decision to keep all three parameters of the SGD NEER policy band unchanged was largely expected, DBS’ FX analyst Philip Wee notes.
USD/SGD to trade lower on a lower DXY range
“The negative output gap is expected to close in 2H24 from this year’s GDP growth coming around the upper end of the official 2-3% forecast range. Advance GDP growth expanded at a better-than-expected 4.1% YoY in 3Q24 vs. the consensus for a rise to 3.8% from 2.8% in 2Q24.”
“The MAS forecasted core inflation to decline from 2.3% in July-August to 2% by the end of 2024 before entering a 1.5-2.5% range in 2025. USD/SGD should continue to take its cue from the currencies of its major trading partners.”
“Our view remains that USD/SGD will trade lower in a 1.25-1.30 range on a lower DXY range of 95-100 driven by another 200 bps of Fed cuts to 3% from now to next year.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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