CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

USD/SGD dips more as US-China relations improve

The minor pair dipped for the eleventh consecutive day, on the back of improved US-China trade sentiment and steady US interest rates.

Source: Bloomberg

The USD/SGD pair continues to be bearish, as it falls for the eleventh straight day.

The currency traded 0.09% lower overnight – its sharpest decline across this time period – to open at S$1.35721 this morning from the previous close of S$1.35643, according to IG data.

The pair has broken past its previous resistance zone of S$1.35836, but not before a short-lived rally on Wednesday 11 December that managed to take it north of the 1.36 mark.

This downward trend succeeds the bullishness that was enjoyed for two weeks in late-November.

Year-on-year, the minor is down around seven percent.

Improved trade sentiment; steady interest rates

IG Asia Market Strategist Jingyi Pan said the greenback is weakening because of an improvement in US-China trade sentiment, coupled with the US Federal Reserve’s latest forecast for steady interest rates through until at least end-2020.

On Thursday 12 December, China’s Ministry of Commerce said the economic and trade teams of both countries are in ‘close communication’ regarding a trade agreement.

Fed officials also voted unanimously during Wednesday’s Federal Open Market Committee to keep interest rates at the current range of 1.5% to 1.75% until the end of 2020.

Next phase of movement

It appears that the USD/SGD could possibly dip further, with analysts like JP Morgan Chase & Co.’s Jamie Dimon saying that ‘there will be a phase-one deal’ between the world’s two biggest economies.

‘It will be a negative in the marketplace and a small-negative’ for the US and global economy, he said. ‘People expect this phase-one deal to take place and tariffs not to go up.’

As Pan noted, ‘any re-escalation of the tariffs war or the carrying forth of the trade war to other fronts, would jeopardise Asia markets’ performance’, including forex.

Much of the greenback’s performance in the coming months, and the wider forex market, is increasingly hanging on one date: December 15.

The pair is currently trading on IG at S$1.35644.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.