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Singapore Dollar Gains, Next Week's Data Dump Eyed

SGD

USD/SGD implied volatilities creep higher ahead of next week's release of monthly CPI (May 23), final quarterly GDP (May 25) and monthly industrial output (May 26) data. One-week tenor rose to 5.87%, recovering from a two-week low printed Wednesday. The rate's 1-month 25 delta risk reversal is still heavy, lodging a 10-day low at typing.

  • Spot USD/SGD trades at SGD1.3877, down 43 pips on the day. Technical focus is on SGD1.3833, which limited losses on May 17. A break here would open up May 4 low of SGD1.3730. On the flip side, bulls eye May 12 high of SGD1.3986 for resistance.
  • MAS chief warned that a Singaporean-only workforce could be "fatal" for the city-state's status as a leading financial centre in Asia and called for openness to global talent.
  • Transport Minister Iswaran noted that Singapore intends to keep its borders open even if a new COVID-19 variant emerges, as the city-state has "learned to adapt."

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