On October 24, 2011 we initiated a trade idea sell USDSGD at around 1.28 with a take profit target of 1.242 and stop loss of 1.293.
Directionally, we were correct in our call where USDSGD hit 1.242 on October 28, 2011. However, this trade did not get triggered since we only hit a high of 1.2776 on October 26, 2011.
We now look to sell USDSGD at 1.273, with a take profit target of 1.235 and stop loss at 1.286.
Over the next few weeks, we expect the EU policy response including the Greece referendum issues to containing the peripheral Europe debt crisis to stabilize risk sentiment.
Our Global FX Strategy team foresees the risks tilted to the upside for EUR/USD to track higher in the near-term.
During periods of a recovery in risk sentiment, we notice that USDSGD tends to fall significantly.
In the near-term, we expect risk sentiment and US macro data to improve. Lower fixings of USDCNY may materialize as EURUSD rises, risk sentiment improves, and US output data accelerate.
Our $S NEER model indicates that the NEER is currently trading just below the center of the policy band. We expect $S NEER to trade in the upper half of the policy band in the next few weeks.
Click here to read the full report:
http://www.easyforexnews.net/wp-content/uploads/2011/11/AsiaStrategyFocusUSDSGDNov12011.pdf
Skandinaviska Enskilda Banken AB