USD/SGD to dip under 1.33 by year-end given robust growth outlook and MAS' hawkishness – TDS

Economists at TD Securities expect the Monetary Authority of Singapore (MAS) to adjust all of its policy settings at its April policy review, likely on Thursday, April 14. Regarding the USD/SGD, they expect the pair to trade lower to 1.33 by year-end.

S$NEER to strengthen as MAS continues with its tightening cycle post April-MPS

“Given increased inflation pressures, MAS to steepen the slope by 50bps, re-center the midpoint to prevailing S$NEER level and widen the S$NEER band.”

“The S$NEER should continue to strengthen as we think the MAS is not done with its tightening cycle.”

“The next level of support is at 1.3396 (23.6% Fib level) but we look for USD/SGD to eventually break through this level and hit 1.33 by year-end given the robust growth outlook and MAS' hawkish stance.”