Halister News

(Bloomberg) -- A larger-than-expected drop in Singapore’s June non-oil domestic exports may provide the catalyst for USD/SGD to rally to 1.3590-1.3598 area near term, Bloomberg strategist Andrew Robinson writes.

• Level represents convergence of 50- and 100-DMAs, respectively
• Island’s exports probably fell 3% y/y following a surprise 11.6% gain in May, median est. in Bloomberg survey shows
  • Ests. range from -12.0% to -1.1%; data due 8:30am local time
• May non-oil exports beat even the most optimistic forecast in survey due to a surge in non-monetary gold exports
  • May’s performance unlikely to be repeated, ANZ wrote in July 15 note; sees normalization in June as tech exports may not benefit from regional upswing that boosted both Korea and Taiwan exports; forecasts a 3.7% y/y decline in June
• USD/SGD down 0.1% at 1.3468 today, down 5.1% YTD
  • FX pair has not closed above 100-DMA since Feb. 2
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice