Chart of the Day USDSGD

<h2><span>Chart of the Day USDSGD</span></h2>
<p><strong>USDSGD – Probable Price Path</strong></p>
<p><span>Global risk appetite may remain capped by concerns about a potential second wave of Covid-19 infections globally and the WHO warned that catching Covid-19 once may not protect from a second infection. The S&amp;P500 added 1.39% on Friday, led by gainers like Apple, Microsoft and Amex, while VIX closed at 36. UST bonds ended the week slightly higher despite the Fed’s plan to trim its bond purchases from $15b to $10b daily this week, with the 10-year bond yield at 0.60% and the 3- month LIBOR lower at 0.88713%. Meanwhile, China’s PBOC cut its Targeted Medium-Term Lending Facility (TMLF) by 20bps to bring the one-year TMLF to 2.95%, while market speculation about North Korean leader Kim Jong Un’s health intensified over the weekend.</span></p>
<p><span>For the week ahead, market will be on Central Bank watch looking for the Fed to  shed light on their current economic outlook, especially for the labour market, as well as the policy guidance (with market debating if a technical IOER tweak from its current 0.1% is on the cards after the effective fed funds rate fell to 0.04% last Thursday), and the ECB on Thursday (with a potential EUR250b lift to the Pandemic Emergency Purchase Program) with Lagarde also due to speak at the press conference following the rate decision</span></p>
<p><span>US: Core capital goods orders unexpectedly rose 1.0% y/y in March, but the University of Michigan consumer sentiment slumped 17.3 points to 71.8 in April (low since December 2011). Meanwhile, US’ GDP growth could plunge nearly 40% annualised in 2Q, with unemployment at 16% and the federal deficit quadrupling to a record US$3.7 trillion this fiscal year, according to the Congressional Budget Office estimates.</span></p>
<p><span>Singapore: March industrial production unexpectedly surged 16.5% y/y (21.7% mom sa), aided by pharmaceuticals (+126.6% y/y), but is unlikely to sustain into April with the one-month Circuit Breaker.</span></p>
<p><img class="aligncenter size-full wp-image-42456" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-27-09.07.12.png" alt="" width="1030" height="1165" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-27-09.07.12.png 1030w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-27-09.07.12-265×300.png 265w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-27-09.07.12-905×1024.png 905w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2020-04-27-09.07.12-768×869.png 768w" sizes="(max-width: 1030px) 100vw, 1030px" /></p>
<p><span>From a technical and trading perspective, the Singapore Dollar continues to find sellers at the 1.43 handle the breach of Fridays lows this morning should see bearish exposure rewarded as 1.4250 caps upside attempts bears will look for a test of the 1.40 area which represents the primary equality objective as measure from the April 6th cycle high. 1.4125 may offer some initial support but any pause here should see 1.4210 attract fresh selling for the next leg lower en-route to the primary objective. Only a closing  breach of 1.4330 would negate the bearish thesis.</span></p>
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