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Forex pairs in this Article » USD/SGD (Barcelona) - According to Jonathan Cavenagh, a Research Analyst at Westpac, "From a USDSGD perspective, we expect the combination of easier monetary policy and weaker economic growth (possibly extending to a technical recession) to keep dips in the pair well supported - tactically we look to buy dips from the low 1.2200 region, although we recognize that without a pick up in market risk aversion and improved USD sentiment, USDSGD upside is likely to be fairly limited."

In addition, "such an outcome is a risk though given the very weak growth dynamics facing the region at the moment - indeed our end year forecast profile has USD/Asia higher, with USDSGD up to 1.2400." Cevenagh adds.

Finally, "The currency should also loose ground on a intra-Asia basis, with MYR and INR attractive longs against SGD. SGD/MYR should be sold towards the 2.5000 level or alternatively on a break of the 2.4800 level, with a fall to the 2.4500 level possible on a multi-month basis." he notes.
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