HALISTER1: INSIDE SINGAPORE: USD/SGD Below 100-DMA; Bullish Momentum Fading

INSIDE SINGAPORE: USD/SGD Below 100-DMA; Bullish Momentum Fading

(Bloomberg) -- USD/SGD begins June at 1.3777, after ending last month below its 100-DMA at 1.3811; slow stochastics falling from over-extended territory.
  • Options expiring today include 1.3800 strikes for $150m
    • 1-month implied volatility now at 6.95%, within 6.2%-9.1% range seen this year
  • MAS will probably not want to rock the boat through the rest of 2016 despite weakness in Q1 GDP number, as Fed likely to hike once or twice before year-end, NAB analysts write in note received May 31
    • MAS probably has some breathing room with fiscal policy already in expansionary mode
  • EUR/SGD steady at 1.5335; slow stochastics %K at 16 is in deep over-extended territory; click here for chart
  • Six-month swap-offer rate at 1.43721% on May 31 vs 1.39933% on May 27
  • 10-year govt bond yield little changed yesterday at 2.2383%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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