Singapore Dollar Weaker For Second Session

Singapore dollar weakens to start the week in Asia, USD/SGD last up 0.0049 at 1.3324. The pair has crept higher driven mainly by a stronger greenback as risk on sentiment takes a back seat amid concerns of a resurgence in Covid cases in the UK and in several Asia-Pac countries. The increase in cases has resulted in stricter measures to prevent the spread in many countries.

• Singapore has reported its own mini spike in infections, investigating 13 infections among foreign visitors who were quarantined at the Mandarin Orchard Singapore hotel. Preliminary findings are that local transmission cannot be ruled out.
• US dollar is stronger despite reports that negotiators in congress have reached a deal for a spending plan, though the announcement was tempered by conditions from both sides and the caveat that no deal will be signed until tomorrow evening.
• This spells the second consecutive trading sessions of declines for SGD, though USD/SGD is still just off multi-year lows and down 11.6% from its high in March.
• USD/SGD is flirting with trend line resistance at 1.3324, other near term resistance is at 1.3400, the Dec 7 high. The pair saw RSI cross over 30 on Friday which would seem to confirm the bullish trend. Near term support for the pair is at 1.3249, the December 17 low