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Golden Cross Materialises In USD/SGD Chart Ahead Of Thursday's GDP Data, MAS Decision

SGD
Singapore is facing a busy end to the week, with advance Q1 GDP and MAS Monetary Policy Statement both coming up on Thursday.
  • The MAS is expected to respond to broadening price pressures by further tightening policy. Note that Singapore's monetary authority exercises its mandate by manipulating the exchange rate.
  • All economists surveyed by Bloomberg forecast tightening but are divided on which specific parameters of the currency band (width, slope, mid-point) will be tweaked.
  • USD/SGD trades flat at SGD1.3642. The rate completed a double-bottom pattern last week, which coincided with the formation of a golden cross. The outlook remains bullish and a break above Apr 11 high of SGD1.3673 would bring Mar 15 high of SGD1.3688 into play. Bears look for a dip through Mar 29 high of SGD1.3620.

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