DOLLAR-SING: USD/SGD trades 14 pips shy of neutral...>

DOLLAR-SING: USD/SGD trades 14 pips shy of neutral levels, at SGD1.4158, ahead

of the release of Singapore's Q1 unemployment. Broad-based USD weakness and

firmer risk appetite have allowed the rate to edge lower.

- Singapore's gov't said yesterday that the city-state has increased its

Covid-19 testing capacity to over 8,000 from ~2,900 a month ago. Health Min Wong

said later that the trend of new cases is improving, but said that a more

pronounced reduction in community transmission is needed before the authorities

will relax social distancing measures.

- Worth re-flagging that the MAS published its Macroeconomic Review yesterday.

The central bank expects GDP contraction to accelerate in Q2 relative to Q1 and

the 2020 growth may miss the off'l forecast range of -4% to -1% Y/Y.

Furthermore, the MAS said that "wages, rather than employment, will bear the

brunt of the labour market adjustment in the near term".

- The rate has crossed below its 50-DMA & bears set their sights on the

SGD1.4123-35 area, where USD/SGD found a base on Apr 10-15. Bulls need a breach

of Apr 21 high of SGD1.4329 before targeting Apr 6 high of SGD1.4417.