SGD Falls To 4-Year Low Against USD! Pls Hold GE Soon Before Recession Hits!

[JohnTan]

Much weaker than expected GDP data from Singapore pushed the island's currency to a four-year low against the US dollar, which has been already rallying broadly.

But despite the negative local data, the overall weakness of the euro led the Singapore dollar through a key resistance line, taking it to a 20-month high against the European currency.

Singapore GDP grew only 1.5% from 2013 in the fourth quarter of 2014, down from 2.8% in the third quarter, and compared to consensus of 2.5%, data showed on 2 January.

The December manufacturing PMI data due on Monday will be the next data point in focus from Singapore.

In USD/SGD, the upside break of the isosceles triangle pattern in September has led to the making of a broad up-trend dating back to July 2011, and the channel resistance being targeted now comes at 1.3650, some 2.5% above the current level.

On the way up, 1.3535 may offer some resistance. However, the pair has to hold the 1.3000 support in order to keep the upward momentum intact.

In case that level is broken below, then the pair will aim 1.2850, a break of which will weaken the up-trend significantly and resume the down-trend aiming levels like 1.2350 and below.

EUR/SGD

The sharp slide in euro against the dollar on Friday weekend the single currency broadly, helping the Singapore dollar break the 1.6007 resistance being held since October.

The cross has fallen 0.25% on Friday, which was the sixth straight day losses for the common currency. The next level downside is 1.5839 ahead of 1.5489 and then the 2012 low of 1.5173.

On the higher side, 1.6439 is first resistance level for the cross, which is the 50% Fibonacci retracement of the 2012 August to 2014 March rally.

Further up, 1.6558 may offer some resistance but a major one will be the 38.2% level of 1.6729 ahead of the 1.700 mark.

http://www.ibtimes.co.uk/forex-news...vs-dollar-rises-20-month-high-vs-euro-1481703

 

[dancingshoes]

wait till fed hike rate next month, USD will rise further.

 

[JohnTan]

wait till fed hike rate next month, USD will rise further.

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

 

[dancingshoes]

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

think it this way, USD too high won't sustain, all other countries are slowing, it will pulled down USD next year. there is lack of equlibrium.

 

[Wunderfool]

One thing you can do knowing the dollar will continue to strengthen further due to impending rate hike is to buy into US dollar or into US equities.

I think it will be at least six months to 9 months before we see normalization. But by then , Singdollar could be trading at 1.45 to 1.50 to one US dollar.

 

[JohnTan]

Singapore may be headed towards a recession. Some of my kakis tell me of a drop in business contracts for 2016 and 2017. Maybe an appreciating USD would help, since singapore is an export-based economy still and USA is one of our main markets.

 

[Wunderfool]

Singapore may be headed towards a recession. Some of my kakis tell me of a drop in business contracts for 2016 and 2017. Maybe an appreciating USD would help, since singapore is an export-based economy still and USA is one of our main markets.

Well, even China, the second largest economy in the world , did a yuan devaluation of nearly 2% yesterday to arrest the slump in export trade.

It looks like the dollar will continue its strength into the next 3 months at least.

 

[po2wq]

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

me remember ze time wen 1 usd ~ 1.4 sgd ...

 

[makapaaa]

http://statestimesreview.com/2015/0...lined-4-in-q2-2015-currency-reach-5-year-low/
[h=1]MTI: Singapore GDP declined 4% in Q2 2015, currency reach 5-year-low[/h]admin / 2 hours ago August 11, 2015





According to the latest figures from the Ministry of Trade and Industry (MTI), Singapore’s GDP figure plummeted 4% in the second quarter of 2015. The Singapore Government has also lowered their GDP growth forecast from 2-4% to 2-2.5% because of the disappointing result.
Citing a weak global economy as the key excuse, the MTI said that the decline is only temporary and will pick up for the rest of 2015:

​

“The global economy performed weaker than expected in the first half of 2015. For the rest of the year, global growth is expected to pick up gradually, although the pace of growth is likely to be uneven across economies. In particular, the advanced economies are expected to see a gradual pick-up in growth, while the growth outlook of regional economies has generally softened.”
​

Photo from cna

The Singapore currency has also weaken to a 5-year low against the US dollars and is now trading at S$1.40 per USD. Like other Asian currencies, the Singapore Dollar (SGD) tumbled because China is attempting to save its crashing stock market by increasing money supply which devalued the yuan as a result. The Shanghai stock index has crashed more than 25% since its peak in June.

 

[laksaboy]

When the economy is doing well, the pappies love to engage in a self-congratulatory wankfest.

When the economy is not doing well, they shrug their shoulders and blame it on external factors which are beyond their control.

Try and let your head wrap around that.

 

[mojito]

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

This will happen when half the foreign workforce leave the island for good.

 

[Lemon]

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

When my parents were in the US in the 1980s, 1 USD = S $2.33 I think.

In fact, some of the old folks would say it used to be 1 USD = S$3.00 long long time ago.

 

[johnny333]

I usually convert my US dividens to Spore $ when depositing it in my Spore account, but I've opened a US account & will keep it as U.S. Dollars because I expect the sing $ to fall.

If anyone wants to do the same, can open a Citi bank account. Whatever you put into the Account, either Sing $ or US$, as long as the funds total Sin$5000, you won't be charged a service fee. The account also comes with a cheque book at no extra cost.

 

[Cerebral]

I remember the time when 1 USD = S$1.64. I wonder if we would return to such exchange rates.

I think SGD weakened overall and not just against USD. With Yuan dropping 1.9% and we can still end up weaker.... that is fucked up

 

[GoldenDragon]

When the economy is doing well, the pappies love to engage in a self-congratulatory wankfest.

When the economy is not doing well, they shrug their shoulders and blame it on external factors which are beyond their control.

Try and let your head wrap around that.

Didnt someone say they could control prices for oil 4 years ago?

 

[winnipegjets]

Singapore may be headed towards a recession. Some of my kakis tell me of a drop in business contracts for 2016 and 2017. Maybe an appreciating USD would help, since singapore is an export-based economy still and USA is one of our main markets.

PAP solution ....bring in more PATANs!

 

[mojito]

PAP solution ....bring in more PATANs!

Indeed. Who cares about export based businesses? More people, more spending, more taxes, more business for real estate and utilities cronies. The PAP will emerge unscathed.

 

[virus]

I usually convert my US dividens to Spore $ when depositing it in my Spore account, but I've opened a US account & will keep it as U.S. Dollars because I expect the sing $ to fall.

If anyone wants to do the same, can open a Citi bank account. Whatever you put into the Account, either Sing $ or US$, as long as the funds total Sin$5000, you won't be charged a service fee. The account also comes with a cheque book at no extra cost.

Why hold fiat money?

 

[frenchbriefs]

Ccb back when I was playing online poker and earning usd,usd fall from 1.4 to 1.2,now im investing in us stock usd start to go up.

 

[kopiOuncle]

don't panic lah
nothing to worry lah
Singapore is so strong and so stable
nothing will shack its great foundation

we have a world class leadership in the pap
so don't panic
and don't worry
the Singapore dollar will remain strong and majulah always

go for your holidays and enjoy yourself