HALISTER1: INSIDE SINGAPORE: Swaps Poised to Break 50/100-DMAs Convergence

INSIDE SINGAPORE: Swaps Poised to Break 50/100-DMAs Convergence

(Bloomberg) -- USD/SGD is heading for its fifth successive weekly gain amid broad dollar strength versus G-10 and EM currencies.
  • Singapore 5-year swaps poised to break above convergence of 50- and 100-DMAs, with possible extension toward 200-DMA at 1.89%; click here for chart
    • Momentum studies set to turn higher; slow stochastics %K at 33, Williams %R at -64; swaps up 1bp to 1.72%
  • USD/SGD trades little changed at 1.3948
  • Singapore dollar may weaken another 0.5%-1.0% in its NEER basket into early 2017, Irene Cheung, FX strategist at ANZ writes in note Thursday
    • Go long USD/SGD into early November, look to buy dips in AUD/SGD and NZD/SGD, says Cheung
  • FX options expiring on Monday include 1.3800 strikes for $1.6b and 1.4000 strikes for $1.77b
  • Six-month swap-offer rate rose 2bps to 1.05512% on October 27
  • Yield on 10-year govt bond rose 5bps to 1.86% on Thursday
  • NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Irene Cheung (Australia & New Zealand Banking Group Ltd)

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HALISTER1: USD/MYR Spot May Open Around 0.5% Higher, Forwards Imply

USD/MYR Spot May Open Around 0.5% Higher, Forwards Imply

(Bloomberg) -- USD/MYR 1-month rose to 4.2067 overnight amid a global bond rout and as oil traded near $50 following a report Gulf nations may be willing to cut output as OPEC weighs action to ease a supply glut.
  • The NDF’s level compares with yesterday’s onshore close for USD/MYR at 4.1845.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: INSIDE JAPAN: USD/JPY Rises With Global Yields; BOJ to Sit: BNP

INSIDE JAPAN: USD/JPY Rises With Global Yields; BOJ to Sit: BNP

(Bloomberg) -- USD/JPY steady at 105.25, trading near its New York close which is highest level in 3 months; Japan December 10-year bond futures fell 7 ticks in overnight session to 151.73.
  • Japan September core consumer prices fall 0.5% y/y vs estimate -0.5%; story here
  • USD/JPY may test July 29 high at 105.63; expected to find layered offers ahead, traders in London and New York said
  • JGB 10-year yields closed Thursday at -0.055% vs -0.060% on Wednesday
  • JGB 30Y yield remains in head-and-shoulders bottom pattern barring break of neckline at 43bp, BofAML technical strategist Paul Ciana said in Oct. 26 note
  • CPI data unlikely to be a major factor for USD/JPY now, according to BNP Paribas in note today;
  • Sees CPI confirming that Japan remains in deflation; notes that although y/y rate of decline in energy prices is shrinking with the fading base effect from last year’s plunging prices, upward pressure on items other than energy is steadily softening, thanks to yen appreciation and sluggish domestic demand;
  • However, does not not expect BOJ to take new action at the policy meeting next week
  • BOJ’s Kuroda to appear in parliament as many as three times today
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Paul Ciana (Bank of America Corp)

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UUID: 7947283