MUFG Bank’s analysis indicates a constructive outlook for the Singapore Dollar (SGD), supported by improving sentiment towards the Chinese Yuan (CNY) and a softer USD backdrop. The report notes that the SGD is at a pivotal technical level, with potential gains towards the 1.260-1.2650 range if the DXY weakens further. The stability in inflation rates also contributes to the positive sentiment.
Singapore Dollar poised for strength
“Notably, SGD is at a pivotal technical level, where it could gain toward 1.260-1.2650 level should the DXY weaken further.”
“In Singapore, both headline and core inflation were unchanged at 1.2%yoy in December. Inflation appears to be bottoming out.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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