On November 1, 2011 we recommended sell USDSGD at 1.273, take profit at 1.235 and stop loss at 1.286. Given volatile market conditions relating to EU policy developments on Greece and our maintaining our core view that risk sentiment towards Asia will improve over the next few weeks, we are moving our stop loss to 1.307 and recommend staying in this trade.
Our S$ NEER model for the MAS S$ NEER, indicates that the NEER is in the lower half of the policy band. Risks of USDSGD tracking higher in the near-term can not be discounted. However, we maintain our view that in the next few weeks USDSGD could track to 1.235 followed by our end-2011 target of 1.20.
Skandinaviska Enskilda Banken AB