USD/SGD struggles to find stability despite recent rallies
The USD rose to a two-week high against the SGD at the start of this week, but has been unable to keep up the pace.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg_us_dollar_USD.jpg/jcr:content/renditions/original-size.webp)
The USD/SGD pair is struggling to find stability at higher levels, with the minor trading sideways along the S$1.42750 level for the most part of Wednesday 08 April’s day session.
The pair has quickly fallen as much as 1.32% since starting the week at a high of S$1.44114, based on IG trading data. The greenback had briefly dropped to a one-week low of S$1.42210 at 21:00 SGT on Tuesday 07 April.
The US dollar has recovered slightly since the hiccup but has been unable to climb past the S$1.42900 mark – a level that it was traversing above for the latter half of last week.
Are you bullish or bearish on the USD/SGD? Either way, you can buy long or sell short on the forex pair using CFDs and other instruments offered on IG's world-class trading platform. Start today by opening an IG account.
‘No signs of stabilisation just yet’ for the USD/SGD
While uncertainty is still an overarching theme for the trading sector, slowing rates of coronavirus infections and deaths in the US and other hotspots over the weekend have also put an abrupt end to what would have been the USD’s second bull sprint in one month.
UOB FX analysts say that ‘while the rapid decline appears to be running ahead of itself, there is no sign of stabilisation just yet’.
‘From here, USD could stage another leg lower towards 1.4190 first before a more sustained recovery can be expected (next support is at 1.4150),’ they wrote in a daily note, adding that current resistance levels are at 1.4280 and 1.4320.
Comparatively, the USD too rose sharply against most G10 currencies on Monday, including the Japanese yen, euro, British pound and Swiss franc, before reversing lower by Tuesday.
USD likely to keep growing against Asian currencies
Even then, with market volatility and uncertainty still looming, as well as ongoing expectations for dismal economic data in the coming weeks, IG Asia market strategist Pan Jingyi says the greenback’s safe-haven appeal is likely to keep growing ‘in favour against most majors and Asian currencies alike in the near-term’.
Earlier last month, the greenback rallied over 6% against the SGD between 09 March and 23 March, as the coronavirus pandemic worsened across the globe, forcing investors and traders alike to look toward the safe-haven asset for some respite.
A correction followed after, taking the US dollar back under 1.42100 by April 1st. Comments by US President Donald Trump regarding an impending oil price war resolution between Saudi Arabia and Russia – which were subsequently refuted by both countries – then fuelled another boost in USD/SGD, with the pair managing to climb past 1.44100 during weekend trading.
What are forex CFDs and how do you trade them?
A forex CFD is a contract in which you agree to exchange the difference in price of a currency pair from when you open your position to when you close it. Open a long position, and if the currency pair increases in price you’ll make a profit. If it drops in price, you’ll make a loss. Open a short position, and the opposite is true.
Where do you stand: are you bullish or bearish on the USD/SGD, USD/JPY (大口) and other Asian forex pairs? Either way, you can trade any of the currencies discussed today – long or short – through IG’s world-class trading platform.
For example, to buy (long) or sell (short) USD/SGD using CFDs, follow these easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter ‘USD/SGD’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/coronavirus-HP-banner.jpg/jcr:content/renditions/original-size.webp)
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.