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Singapore Ratifies RCEP


Familiar technical levels are in play, resistance is seen at last week's high of 1.3495, beyond which is the 2021 high at 1.3531. Support is seen at 1.3444, a 23.6% retracement level, while strong support is seen at 1.3391, a 38.2% retracement level that has held since early March. Longer term bears look to the 50-day moving average at 1.3367 with the rate coiling to form bearish flag. SGD is supported by higher domestic yields, the benchmark 10-year yield is over 90bps higher since the start of 2021.

  • On Friday it was announced that Singapore had ratified the Regional Comprehensive Economic Partnership (RCEP) and deposited its ratification instrument, becoming the first participating country to complete the official process. All 10 Asean members and key partners Australia, China, Japan, New Zealand and South Korea signed the trade pact, the world's largest, last November.
  • Last week Singapore's finance minister Heng announced he would not become successor to PM Lee, the government has said finding a replacement could take several years. Some potential candidates include minister for trade and industry Chan, minister for transport Ong and co-chair of the Covid-19 task force Wong. Indranee Rajah is being floated as the next finance minister, an appointment is expected to be announced in around two weeks.
  • Fig.1: USD/SGD

Source: MNI/Boomberg

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