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15 Oct 2014
USD/SGD: Mid term upward pressure expected - Nomura
FXStreet (Bali) - From a mid term view, Nomura continues to see vulnerability in FX basket regime currencies, including SGD.
Key Quotes
"With no policy surprises from the MAS, we look to trade S$NEER around a 0% to +1% range. At current levels, with around 48bp of deviation from the mid-band (09:30am SGT), we see limited value in S$NEER, although it may be biased higher (i.e.,lower USD/SGD) in the near term, as markets digest the Fed's views on the impact of a stronger USD on growth and inflation."
"However, as we have a medium-term view of further, broad strength in USD, as well as an expected growth slowdown in some major economies (China, the euro area and Japan), we continue to see vulnerability in FX basket regime currencies, including SGD."
Key Quotes
"With no policy surprises from the MAS, we look to trade S$NEER around a 0% to +1% range. At current levels, with around 48bp of deviation from the mid-band (09:30am SGT), we see limited value in S$NEER, although it may be biased higher (i.e.,lower USD/SGD) in the near term, as markets digest the Fed's views on the impact of a stronger USD on growth and inflation."
"However, as we have a medium-term view of further, broad strength in USD, as well as an expected growth slowdown in some major economies (China, the euro area and Japan), we continue to see vulnerability in FX basket regime currencies, including SGD."