Sell SGD: NEER above midpoint not justified - ANZ

FXStreet (Delhi) – Khoon Goh, Senior FX Strategist at ANZ, notes that the ECB easing announced last night fell short of market expectations, sending EUR sharply higher which saw the Singapore dollar rally, pushing the S$NEER above the midpoint based on our estimates.

Key Quotes

“We do not believe the S$NEER trading above the midpoint is justified, given the still poor growth outlook and lack of inflation in Singapore.”

“Therefore, we recommend buying USD/SGD at 1.3966, targeting 1.4250, with stop-loss at 1.3850.”