• Singapore Dollar Vulnerable to 2017 Low on Surprise Easing Risk
    Bloomberg

    Singapore Dollar Vulnerable to 2017 Low on Surprise Easing Risk

    (Bloomberg) -- Singapore’s currency may tumble to the lowest level since 2017 if the central bank responds as strongly to the spread of the coronavirus as it did to the SARS epidemic two decades ago.That’s the view of Tan Teck Leng, a macro strategist at UBS Group AG’s Global Wealth Management Chief Investment Office, who thinks the Monetary Authority of Singapore could re-center its policy band for the currency lower. It took this rare action in 2003 to deal with the fallout from SARS and doing so again could see the local dollar dip through 1.40 versus the greenback, according to Tan.Singapore’s fiscal chiefs pledged S$6.4 billion ($4.6 billion) in dedicated support for the economy on Tuesday, underscoring the level of concern among policy makers about the threat posed by the virus. The city state has more than 80 confirmed cases of the coronavirus and its trade-dependent economy is particularly vulnerable.“There is a chance that if the virus were to get worse, that a re-centering down is possible,” Tan said in an interview in Singapore. “They can be very granular about how much they want to ease.”Singapore’s dollar has already slid 3.3% against the greenback this year, making it the worst-performing currency in Asia after Thailand’s baht.Read More: Singapore’s Heng Says Budget Gives ‘Large’ Boost to EconomyThe MAS most recently eased policy in October by slightly reducing the slope amid the U.S.-China trade war and slowing growth. The central bank has re-centered the band lower only three times since 2001, and it did so only after it had shifted to a neutral policy stance.The currency dropped to a four-month low earlier this month after the MAS said there was room within its exchange-rate band to accommodate currency weakness to counter the economic fallout of the disease.The central bank conducts it monetary policy through its currency and has three parameters to control the Singapore dollar: the pace of appreciation in the exchange rate, known as the slope; the width of the policy band; and the level at which that band is centered.Read More: A Central Bank With No Key Rate? Yes, in SingaporeOver the past two decades, most changes have been made by altering the slope.“The immediate consequence of a downward re-centering is that there’s suddenly additional room for the Sing NEER to weaken,” said Tan, referring to the nominal effective exchange rate. Assuming that the currency is trading close to the weaker end of the band, re-centering down could open the way for 1%-2% of additional depreciation, he said.The Singapore dollar was trading at 1.3907 per greenback on Wednesday.The central bank’s next policy review is in April.UBS sees the most likely scenario for April is that MAS flattens the slope as the impact of the virus is brought under control.Still, re-centering the band downward while keeping the slope positive is “in the realm of possibility,” said Tan.(Adds tout, updates prices)To contact the reporters on this story: Ruth Carson in Singapore at rliew6@bloomberg.net;Masaki Kondo in Tokyo at mkondo3@bloomberg.netTo contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net, Brett MillerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Litecoin, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – 19/02/20
    FX Empire

    Litecoin, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – 19/02/20

    It’s a bearish start to the day for the majors. Expect Bitcoin to provide direction later in the day. A move through Tuesday’s highs would signal a breakout.

  • Economic Data Puts the GBP, USD and Loonie in the Spotlight, with the FOMC Minutes also in Focus
    FX Empire

    Economic Data Puts the GBP, USD and Loonie in the Spotlight, with the FOMC Minutes also in Focus

    It’s a busy day ahead, with inflation figures out of Canada, the UK, and the U.S, and the FOMC Meeting Minutes in focus…

  • Asia Open : It’s Not Where It’s Been, Its Where It’s Going “Earnings Don’t Move The Overall Market; It’s The Federal Reserve Board”
    FX Empire

    Asia Open : It’s Not Where It’s Been, Its Where It’s Going “Earnings Don’t Move The Overall Market; It’s The Federal Reserve Board”

    Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity.

  • Gold (GC) Technical Analysis Price Futures – Big Price Surge after Overtaking Resistance Cluster
    FX Empire

    Gold (GC) Technical Analysis Price Futures – Big Price Surge after Overtaking Resistance Cluster

    Gold ran into resistance at a downtrending Gann angle at $1606.10. Trader reaction to this Gann angle will likely set the tone on Wednesday.

  • Gold Price Forecast – Gold Markets Break Barriers
    FX Empire

    Gold Price Forecast – Gold Markets Break Barriers

    Gold markets rallied significantly during the trading session on Tuesday, breaking above the $1600 level. At this point, the market looks is likely to continue to go higher, especially if we can break to a fresh, new high.

  • EUR/USD Mid-Session Technical Analysis for February 18, 2020
    FX Empire

    EUR/USD Mid-Session Technical Analysis for February 18, 2020

    Based on the early price action and the current price at 1.0811, the direction of the EUR/USD the rest of the session on Tuesday is likely to be determined by trader reaction to Monday’s close at 1.0836.

  • Gold Price Forecast – The Surge To $1700 As Predicted
    FX Empire

    Gold Price Forecast – The Surge To $1700 As Predicted

    Gold has begun the final surge into its 6-month cycle peak. Prices could reach $1700 in March.

  • EUR/USD Price Forecast – Euro Collapses
    FX Empire

    EUR/USD Price Forecast – Euro Collapses

    The Euro continues to fall rather hard during the trading session on Tuesday as the German ZEW Economic Sentiment figures came out at less than half as expected.

  • GBP/USD Price Forecast – British Pound Continues To Stagnate
    FX Empire

    GBP/USD Price Forecast – British Pound Continues To Stagnate

    The British pound rallied a bit during the trading session after falling when it was announced that the UK budget was going through. That being said though, this is a market that is still meandering around the 1.30 level more than anything else.

  • GBP/JPY Price Forecast – British Pound Rallies Against Japanese Yen
    FX Empire

    GBP/JPY Price Forecast – British Pound Rallies Against Japanese Yen

    The British pound initially pulled back during the trading session on Tuesday but found plenty of support at the 50 day EMA to turn around and show signs of life again. The fact that the British are going to go ahead with their budget certainly help the situation as well.

  • Investing.com

    Gold Rides Apple Warning to Reclaim $1,600

    By Barani Krishnan

  • Gold Sets Records in Euro and Strives Even Higher
    FX Empire

    Gold Sets Records in Euro and Strives Even Higher

    Apple has returned to the market fear of the coronavirus’ impact on the economy.

  • AUD/USD Price Forecast – Australian Dollar Continues To Plummet
    FX Empire

    AUD/USD Price Forecast – Australian Dollar Continues To Plummet

    The Australian dollar fell significantly during the trading session on Tuesday, as we continue to see a lot of concerns when it comes to the RBA cutting rates and of course the entire situation in China.

  • Trump and Economic News That Drive Gold, Not Just Coronavirus
    FX Empire

    Trump and Economic News That Drive Gold, Not Just Coronavirus

    Coronavirus, the topic du jour. It is still the major threat for the global health and economy.

  • Gold Daily News: Tuesday, February 18
    FX Empire

    Gold Daily News: Tuesday, February 18

    The gold futures contract gained 0.48% on Friday, as it extended its short-term uptrend.

  • Latest Litecoin price and analysis (LTC to USD)
    Coin Rivet

    Latest Litecoin price and analysis (LTC to USD)

    Litecoin remains in a bullish formation despite suffering a potentially devastating sell-off over the weekend. After surging to a six-month high of $83 Litecoin felt the full force of bearish pressure as it succumbed to a sudden 19.65% move to the downside. However, the world's sixth largest cryptocurrency rapidly bounced back before the daily candle close to avoid a confirmed break down in price. It has gone on to close two consecutive daily candles above the $72 level of support, which will be key if the rally is to see continuation over the coming weeks. If Litecoin can continue to establish $72 as a platform it will most likely swing back towards the $78 level of resistance. A breakout aboveThe post Latest Litecoin price and analysis (LTC to USD) appeared first on Coin Rivet.