Risk currencies fare better

Traders await the ECB policy meeting.

IG Markets Singapore noted:

On the FX markets risk currencies fared better, the euro recovered some ground against the greenback. The single currency moved up to $1.312 having earlier in the day traded lower, heading back down towards the 1.30 level.

This turnaround was down to FX traders hedging their bets that the forthcoming ECB policy meeting on Thursday will leave rates and policy unchanged, compared to the more sympathetic Fed.

OCBC Treasury Research meanwhile reported:

On the SGD front, the NEER is currently around +0.90% above its perceived parity (1.2395) with the extreme strong end of the NEER fluctuation band expected at around 1.2215 at current levels. Topside for the USD-SGD meanwhile is expected towards 1.2320.

Multi-session, the SGD may remain a function of relative plays within the region or against the majors, with limited room for discretionary SGD strength against the USD.