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SGD lost over 4% vs. USD this year, before rebounding. The move saw the currency fall from around 1.56% above the mid-point of the SGD NEER band to around -0.47% below the mid-point, a precipitous drop. Analysts at TD Securities recommend a trade position on the USD/SGD.

Key quotes

“Sell USD/SGD at 1.3874, target 1.3688 (50 and 200-day moving average), stop loss 1.3957.” 

“While it is now likely that MAS eases policy at its review in April there is scope for SGD to appreciate vs. USD even as it stays within the lower half of the band.” 

“Separately the Fed’s decision to slash rates by 50bp, and likely further cuts in March and April, has undermined the USD further.”

“Further USD pressure is likely against EM FX in the short term, and we believe SGD is an attractive option to capitalize on its weakness.”

“USD/SGD MACD (12.26) has crossed below the signal line, pointing to further downside in the currency pair.”