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DOLLAR-SING: A media statement from the Monetary.....>

BRENT TECHS, DOLLAR-SING
DOLLAR-SING: A media statement from the Monetary Authority of Singapore prompted
USD/SGD to stage a sharp rally & print a fresh four-month high. The MAS noted
that its policy stance remains unchanged, but "there is sufficient room within
the policy band to accommodate an easing of the Singapore Dollar Nominal
Effective Exchange Rate (S$NEER) in line with the weakening of economic
conditions as a result of the outbreak of the 2019 novel coronavirus." The MAS
added that the next policy review will take place in Apr as scheduled.
- These comments come after Singapore reported the first domestic instance of
human-to-human coronavirus transmission. The city-state has thus far confirmed
24 local cases of the disease.
- USD/SGD has surged 113 pips and trades at SGD1.3817, posting gains for the
eighth straight day. The next bullish target is provided by the Oct 8 & 9 highs
at SGD1.3828. If the level gives way, topside focus will turn to the Oct 1 peak
at SGD1.3879. Bears keep an eye on momentum indicators, which suggest that the
rate is slightly overbought. They need a drop back below the 200-DMA at
SGD1.3667 to regain some poise.

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