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The USD/SGD was near the 1.26500 realm at the end of February. Since the start of the Iranian conflict the USD/SGD has traversed a higher landscape, but it has been filled with a variety of reversals and tests of values which have likely caused many day traders to suffer if they have not used proper risk taking strategies. The USD/SGD is near the 1.28085 ratio as of this writing as it sustains higher elevations.
Financial institutions in Singapore are a great barometer regarding global outlook. However, another indicator traders can use are the 10 Year U.S Treasury yields, which have recently become not only high but are showing enough force to make USD centric strength rather stubborn. The USD/SGD is correlating well to the broad Forex market.
Values Today and Indicators for the USD/SGD
Technical traders of the USD/SGD have seen a fairly incremental climb in the currency pair take place since last Wednesday. Last Wednesday the 1.27200 mark was clearly in sight. Hopes that the U.S and China summit in Beijing would produce some type of resolution for the Iranian conflict never appeared. Higher energy costs via the price of WTI Crude Oil and other resources have not only emerged, but has created a fear that inflation will become problematic.
The USD/SGD did trade above the 1.29000 mark towards the end of March. Before this high and since the Iranian crisis the current value of the currency pair has been challenged several times. We are not in uncharted waters. Financial institutions are clearly trying to weigh their outlooks and are concerned about the potential of another escalation in the Middle East. Yet, the highs seen in late March have not reappeared because it is likely many big players are still hoping for a good outcome.
Choppy Conditions and Murky Outlooks for the USD/SGD Near-Term
The lower realm of the USD/SGD seen last week at this time may start to feel like a distant dream if conditions remain nervous the next few days.
Traders who believe the USD/SGD has been overbought may be proven correct, but timeframes are important.
Positive impetus will have to be delivered for traders to suddenly shift their nervous stances.
The yields on U.S Treasuries are an important asset to monitor.
If investors continue to pile into U.S bonds because they are nervous, this will continue to make the USD/SGD stronger upwards.
Choppy conditions are likely today and tomorrow, and until positive influence is seen, perhaps looking at support levels as places to ignite quick buying wagers is a possible path to pursue for speculators.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28100
Current Support: 1.28040
High Target: 1.28275
Low Target: 1.27990