Singapore Dollar Strengthens After 1.4140 Failure

The Singapore traded choppy throughout the Asian trading session before a spike up to test 1.4140. The failure led to a retrace back to the 1.4100 price level before bullish dollar sentiment provided support. Oil prices below $114 per barrel and bearish comments from an ECB official led to a drop in the EURUSD which us underpinning the pair.

[B]Talking points

• Singapore Dollar Finds Support At 1.4100
• USDHKD Looks To Test Support At 7.8038
• Heng Seng Index Starts Strong
[/B]
Singapore Dollar Strengthens After 1.4140 Failure

The Singapore traded choppy throughout the Asian trading session before a spike up to test 1.4140. The failure led to a retrace back to the 1.4100 price level before bullish dollar sentiment provided support. Oil prices below $114 per barrel and bearish comments from an ECB official led to a drop in the EURUSD which us underpinning the pair.

The HUSD/HKD was consolidating around the 7.8100 price level before it saw a sharp move lower. The Hang Seng index started the day higher which lent support which was further aided by profit taking. The pair is currently looking to test support at 7.8038.

U.S. trade balance report presents the only event risk on the calendar, with expectations that the deficit widened. If the increase was due to decreasing exports, the dollar may trade heavy following the report as that source of growth for the economy may be fading. The recent dollar strength will only further weigh on demand for exports and the U.S. economy will have to look domestically to fill the void.

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