MAS Survey Predicts Faster Growth

An uneventful session for SGD on Monday with several markets in the region on holiday, USD/SGD stuck to a narrow range through the session amid a lack of catalysts. The pair finished the day 4 pips higher, last trading at 1.3268.

• Support is seen at the 76.4% retracement level at 1.3245, below this the 2021 low at 1.3157 comes into play. Resistance is seen at the 50-DMA 1.3296 and a 61.8% retracement level at 1.3300.
• Focus in Singapore remains on the easing of social distancing measures, Singapore will now allow social gatherings of five people — an increase from the previous two-person limit. Limits on event attendees and operating capacity at venues such as public libraries and museums will also be relaxed. The government added that dining-in at restaurants would only resume on June 21 if the coronavirus situation here remains under control.
• Elsewhere an MAS survey has found that the Singapore economy is set to expand by 6.5% this year, higher than the Government's full-year growth forecast of 4%-6%. A majority of the economists (77%) said that an escalation of the Covid-19 crisis is the top risk to Singapore's economic growth outlook. About 47% of the respondents identified geopolitical risks, including tensions between the US and China, as a potential hurdle to growth. Around 29% pointed to a slower-than-expected recovery of the labour market as a risk to economic growth.