USD to SGD exchange rate spikes up as Singapore prolongs 'circuit breaker'
The USD rose above S$1.43060 against the Singapore dollar on Tuesday, as Singapore extended its 'circuit breaker' period to 01 June in a bid to contain the coronavirus pandemic.
The USD/SGD forex pair is testing 23 March 2020 peak levels once again, with the USD rising sharply against the SGD to S$1.43060 as at 17:20 on Tuesday 21 April, based on IG trading data.
The reverse perspective has the SGD to USD exchange rate at S$1.0000 to US$0.6996, according to Bloomberg.
IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs, you can buy long or sell short on the USD/SGD forex pair depending on whether you think prices will rise or fall. Start today by opening an account on IG's market-leading trading platform.
Singapore extends 'circuit breaker' measures; oil prices crash
On Tuesday, the USD rallied 0.37% shortly after Singapore’s Prime Minister Lee Hsien Loong announced an extension of the country’s coronavirus 'circuit breaker' containment measures by four more weeks to 01 June 2020. The first 'circuit breaker' was due to end of 04 May 2020.
The safe-haven greenback also rallied against the SGD as oil price futures plunged to their lowest levels since May 2003 at around the same time. WTI crude and Brent crude each fell around 25.6% and 13.3% to US$16.15 and US$24.35 per barrel respectively as at 18:15 SGT on 21 April 2020, based on IG oil futures trading data.
The oil price drops came as oil producers ran out of storage space in the face of a demand wipe-out, forcing them to pay traders to buy the oil from them, rather than pay heftier storage charges.
With volatility also on the rebound again – IG’s Volatility Index (VIX) has risen over 14% in the last 36 hours, all signs are pointing towards a fresh wave of boosts for safe-haven assets like the US dollar and gold. Gold futures prices are up 0.31% as at 19:00 SGT on 21 April 2020.
On 23 March 2020, the USD had rallied to an 11-year high against the Singapore dollar, hitting S$1.46439, following the break out of tensions between Saudi Arabia and Russia over oil prices and supply, as well as the US government’s delay on approving a coronavirus fiscal stimulus package.
Are you bullish or bearish on USD/SGD rates? Either way, you can buy long or sell short on the USD/SGD, AUD/SGD and other forex pairs using CFDs and other instruments offered on IG's world-leading trading platform. Start today by opening an IG account.
USD has to stay above 1.4280 for bull case to remain in tact
UOB FX analysts had written in a note posted earlier on Tuesday that despite the currency pair dipping below 1.4200 on Monday, the mild downward momentum has hardly improved.
Their bear case for the USD/SGD on Tuesday was that the USD could drift lower, with a break of the strong support at 1.4160 appears unlikely. On the upside – the bull case, they said the US dollar would have to move back above 1.4280 (minor resistance is at 1.4260) in order to indicate that the current mild downward pressure has eased.
Their prediction for the next few weeks is that the pair has to move and stay above 1.4280 within these few days. Otherwise, any prospects for a stronger rebound to 1.4380 would diminish.
How to trade forex?
There are a variety of different ways that you can trade forex, but they all work the same way: by simultaneously buying one currency while selling another. Traditionally, a lot of forex transactions have been made via a forex broker, but with the rise of online trading you can take advantage of forex price movements using derivatives like CFD trading.
Learning how to trade any market can seem daunting, so we’ve broken forex trading down into some simple steps to help you get started:
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.