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14 Apr 2015
Singapore's MAS holds, USD/SGD dips a good buy opportunity – ANZ
FXStreet (Barcelona) - The Team at ANZ, notes that Singapore’s Monetary Authority left its policy on hold against expectations, and further give the outlook for GDP and the SGD.
Key Quotes
“Today’s decision by the Monetary Authority of Singapore (MAS) to leave its policy settings unchanged was against our expectation for a re-centring.”
“Given the high hurdle for policy change, we see MAS keeping the current policy stance for the rest of the year.”
“MAS appears to have become more vigilant towards upside inflation risks stemming from the tight labour market, compared to its January statement.”
“We are revising down our 2015 full year GDP growth forecast to 2.8%, from 3.2% previously, despite the better-than-expected Q1 advanced estimate. We have also revised our 2016 growth forecasts down to 3.2% from 3.4%.”
“We expect the S$NEER to trade within the lower half of the policy band, and for the lower bound to be tested again as we get closer towards Fed lift-off.”
“We see the dip in USD/SGD as a good opportunity to buy. We hold on to our short SGD/INR trade.”
Key Quotes
“Today’s decision by the Monetary Authority of Singapore (MAS) to leave its policy settings unchanged was against our expectation for a re-centring.”
“Given the high hurdle for policy change, we see MAS keeping the current policy stance for the rest of the year.”
“MAS appears to have become more vigilant towards upside inflation risks stemming from the tight labour market, compared to its January statement.”
“We are revising down our 2015 full year GDP growth forecast to 2.8%, from 3.2% previously, despite the better-than-expected Q1 advanced estimate. We have also revised our 2016 growth forecasts down to 3.2% from 3.4%.”
“We expect the S$NEER to trade within the lower half of the policy band, and for the lower bound to be tested again as we get closer towards Fed lift-off.”
“We see the dip in USD/SGD as a good opportunity to buy. We hold on to our short SGD/INR trade.”