Singapore Dollar: Further under-performance possible - Westpac

FXStreet (Bali) - SGD has already weakened back to the mid-point of the MAS band, with further underperformance possible once a pullback to 1.2450 sees fresh long positions re-established, notes Westpac.

Key Quotes

"The weaker domestic backdrop for Singapore and the softer trend for EUR have finally caught up with SGD. The bounce in USD/SGD from just below 1.2370 level to 1.2550 has been impressive and got market positioning to a more neutral/slightly long setting."

"Further weakness may be harder to come by, particularly with our SGD NEER estimate getting back towards the mid-point of the MAS band. Still, we see no reason to sell USD/SGD and we expect dips back towards the 1.2450 level to be well supported."