USD/SGD breaks below 100-day moving average

The nominal effective exchange rate is above the mid-point of the appreciation policy band.

DBS Group Research reported:

USD/SGD broke below its 100-day moving average around 1.2260, its support in the first three days of this week.

More importantly, the SGD nominal effective exchange rate is now above the mid-point of its appreciation policy band, where it should be in an improving outlook environment.

Against this background, there is no reason to expect the source of yesterday’s optimism to be excluded.

OCBC Treasury Research meanwhile noted:

The SGD NEER is creeping nearer the extreme strong end of its fluctuation band again given the prevailing market conditions with the index currently around +1.23% above its perceived parity (1.2385) with the extreme boundary expected at around 1.2200.