Free Trial
USDCAD TECHS

Heading South

AUDUSD TECHS

Northbound

EURJPY TECHS

Breaches Key Short-Term Support

US TSYS

Late SOFR/Treasury Option Trade

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

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

SGD

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

Keep reading...Show less
205 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

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

Keep reading...Show less