Halister News

(Bloomberg) -- Recommend averaging into a short SGD exposure using a basket of five currencies, that doesn’t include China, Peter Redward, principal at Redward Associates, says in an interview.

• SGD is now around 0.5% above the midpoint of its undisclosed NEER trading band, strongest since June 2015, says Redward
• Sees MAS SGD NEER declining toward 121.90; suggests adding to short position for every 50bps rise in NEER, with stop- loss at 126.70
• Redward’s basket includes USD, EUR, JPY, MYR and TWD
• Also sees SGD 1-year interest-rate swaps falling toward 1.00% in coming weeks; now at 1.4750% vs 1-year USD swaps at 0.7785%
• USD/SGD up 0.2% to 1.3604; last week touched 8-month low at 1.3487