SGD: Sing in the wings – Deutsche Bank

Research Team at Deutsche Bank, suggests that there was little pushback to their view that MAS would not change policy at their April meeting given a reiteration of their core inflation forecasts, and fiscal support.

Key Quotes

“Nonetheless, we argued that SGD NEER above the midband looked expensive. Most clients were in agreement about tactical SGD shorts, but this was more of a niche position now. We shared that USD/SGD was not the perfect proxy for China stress, due to de-correlation in the USD basket during risk-off (JPY and EUR stronger, even if CNY and North Asia weaker), and that it works better in a more uniformly bullish USD environment led by the Fed.”