Free Trial

SGD NEER Eyeing Top End Of MAS Band, CPI Prints On Friday


The SGD NEER is edging closer towards the top end of the MAS band, according to Goldman Sachs estimates. We are now at -0.40%, see the chart below. This is still below YTD highs, but not by much. USD/SGD tracks around recent ranges, unable to break above 1.4100 (last at 1.4065/70).

  • Market risks are pointing towards a further MAS tightening in October. Recent data outcomes are leaning that way, although note August CPI data is due this Friday. The market expects further gains (headline to 7.2% from 7.0%, core to 5.0% versus 4.8% previously).
  • Interestingly, Singapore GDP growth expectations now sit around expectations for the rest of Asia in 2022 at ~3.6%. This down from around 4% earlier in the year, while the rest of the region has seen sharper downgrades, led by China.
  • Earlier, MAS Managing Director Menon gave a speech around critical economic uncertainties (see this link). While Menon recognized the risks around global growth next year, he also stated inflation risks are tilted higher.

Fig 1: Goldman Sachs SGD NEER - Deviation from Top End Of The MAS Band

Source: Goldman Sachs/MNI - Market News/Bloomberg

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.