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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