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Currency Market Analysis

Nov 07, 2017 | Currency Market Analysis

Global Themes

USDSGD falls as local currency boosted by oil

The Singapore dollar was boosted higher overnight as oil prices reached two-year highs.

A series of arrests of high-profile figures in Saudi Arabia has sparked political worries in the world’s largest producer of crude oil.

The Singapore dollar is often driven by energy prices with oil refining accounting for around 5% of Singapore’s domestic economic growth.

SGD mixed

The USDSGD fell 0.2% overnight.

The Singapore dollar was mixed in other markets.

The EURSGD fell 0.2% while the GBPSGD was up 0.5%.

The Japanese yen gain 0.1% while the Australian dollar was stronger high thanks to the improving oil price.

RBA risk

The local market will be focused on the Reserve Bank of Australia meeting. The RBA meets at 11.30am.

After three weak retail sales numbers over the last three months – and a big miss in the September quarter inflation reading – the risk is that the RBA could strike a more cautious tone.

If so, the AUDSGD could be heavily sold.

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