Market News & Analysis


Top Story

Singapore Dollar Eases on Downbeat Data

Official data showed that Singapore's Retail Sales dropped 13.3% on year in March (-16.8% expected, -8.4% in February), the biggest decline since 1998.


Source: Bloomberg


Singapore's Official Purchasing Managers Index (PMI) fell to 44.7 in April (40.0 expected) from 45.4 in March.


Meanwhile, the IHS Markit Singapore PMI plunged to 28.1 in April from 33.3 in March.


Source: Bloomberg, IHS Markit

Research firm IHS Markit commented: "The 'circuit breaker', which resulted in widespread closures of non-essential businesses as the government acted to stem the spread of the coronavirus disease 2019 (COVID-19), was the key factor causing activity to fall at a survey-record rate."

The city state has recorded over 19,000 coronavirus case with a related death toll of 18 (death rate less than 0.1%). Minister for National Development Lawrence Wong announced that key coronavirus-related restrictions will remain in force until June 1, though some lockdown measures will be easing gradually. He added: "Remember the fight is far from over." 

Following a series of downbeat data, the Singapore dollar has pared some of the strength it has recently shown against the U.S. dollar.

On an Intraday 30-Minutes Chart, USD/SGD has located a Key Support at 1.4145.

Source: GAIN Capital, TradingView

It is currently trading at levels above the ascending 20-period moving average, which stands above the 50-period one.

The Technical Configuration still favors a Bullish Bias.

Unless the key support at 1.4145 is breached, USD/SGD is expected to encounter Overhead Resistance at 1.4185 and 1.4205 (around the high of May 4).

However, a return to 1.4145 would make the pair seek support at 1.4130 on the downside.

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.