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Greenback Drives Price Action

SGD

USD/SGD struggled to make much headway beyond Aug 23/one-month high of SGD1.4003 and gave back the bulk of its initial gains on Monday. Broader greenback strength occupied the driving seat, with the pullback in USD/SGD linked to EUR/USD purchases in response to some positive signals re: stability of European energy market.

  • The rate has added 10 pips today and last trades at SGD1.3968. A break above Aug 23/29 highs of SGD1.4003/1.4006 would bring Jul 13 & 14 highs of SGD1.4097 into play. Bears need a retreat under Aug 26 low of SGD1.3865 before taking aim at the 200-DMA/Aug 11 low at SGD1.3702/1.3666.
  • Singapore's Ministry of Manpower announced an overhaul of visa rules to attract foreign workers and alleviate the current tightness of domestic labour market.
  • The next local data release of note is Friday's Purchasing Managers Index.

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