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DOLLAR-SING: The Singapore dollar continues to.......>

BRENT TECHS, DOLLAR-SING
DOLLAR-SING: The Singapore dollar continues to trade within a tight contracting
range, with today's solid real GDP figures failing to trigger any major move in
the currency. Real GDP expanded by 4.4% y/y in Q1, in line with expectations but
up from 3.6% y/y in Q4, which prompted the Ministry of Trade and Industry to
upgrade the country's full-year growth forecast to 2.5-3.5% from 1.5-3.5%
previously.
-USDSGD faces resistance at around 1.347-1.350 and support at 1.336-1.337, which
coincides with the 200DMA. Given the upward pressure on the greenback against
the majors, and the incipient weakness in the Chinese yuan, a break higher in
USDSGD seems the most likely scenario.
- That said, the currency should remain a safe haven within the region, and we
expect its close peg to the US dollar to see it outperform the Asian Dollar
Index. The strong GDP showing will also keep up expectations for the MAS to
maintain its mildly appreciatory currency stance when it meets again in
September.

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