USD/SGD struggles to find stability despite recent rallies

The USD rose to a two-week high against the SGD at the start of this week, but has been unable to keep up the pace.

The USD/SGD pair is struggling to find stability at higher levels, with the minor trading sideways along the S$1.42750 level for the most part of Wednesday 08 April’s day session.

The pair has quickly fallen as much as 1.32% since starting the week at a high of S$1.44114, based on IG trading data. The greenback had briefly dropped to a one-week low of S$1.42210 at 21:00 SGT on Tuesday 07 April.

The US dollar has recovered slightly since the hiccup but has been unable to climb past the S$1.42900 mark – a level that it was traversing above for the latter half of last week.

Are you bullish or bearish on the USD/SGD? Either way, you can buy long or sell short on the forex pair using CFDs and other instruments offered on IG's world-class trading platform. Start today by opening an IG account.

‘No signs of stabilisation just yet’ for the USD/SGD

While uncertainty is still an overarching theme for the trading sector, slowing rates of coronavirus infections and deaths in the US and other hotspots over the weekend have also put an abrupt end to what would have been the USD’s second bull sprint in one month.

UOB FX analysts say that ‘while the rapid decline appears to be running ahead of itself, there is no sign of stabilisation just yet’.

‘From here, USD could stage another leg lower towards 1.4190 first before a more sustained recovery can be expected (next support is at 1.4150),’ they wrote in a daily note, adding that current resistance levels are at 1.4280 and 1.4320.

Comparatively, the USD too rose sharply against most G10 currencies on Monday, including the Japanese yen, euro, British pound and Swiss franc, before reversing lower by Tuesday.

USD likely to keep growing against Asian currencies

Even then, with market volatility and uncertainty still looming, as well as ongoing expectations for dismal economic data in the coming weeks, IG Asia market strategist Pan Jingyi says the greenback’s safe-haven appeal is likely to keep growing ‘in favour against most majors and Asian currencies alike in the near-term’.

Earlier last month, the greenback rallied over 6% against the SGD between 09 March and 23 March, as the coronavirus pandemic worsened across the globe, forcing investors and traders alike to look toward the safe-haven asset for some respite.

A correction followed after, taking the US dollar back under 1.42100 by April 1st. Comments by US President Donald Trump regarding an impending oil price war resolution between Saudi Arabia and Russia – which were subsequently refuted by both countries – then fuelled another boost in USD/SGD, with the pair managing to climb past 1.44100 during weekend trading.

What are forex CFDs and how do you trade them?

A forex CFD is a contract in which you agree to exchange the difference in price of a currency pair from when you open your position to when you close it. Open a long position, and if the currency pair increases in price you’ll make a profit. If it drops in price, you’ll make a loss. Open a short position, and the opposite is true.

Where do you stand: are you bullish or bearish on the USD/SGD, USD/JPY and other Asian forex pairs? Either way, you can trade any of the currencies discussed today – long or short – through IG’s world-class trading platform.

For example, to buy (long) or sell (short) USD/SGD using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘USD/SGD’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

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 concerns amplify. Trade with IG and 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 only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.