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7 Jan 2014
USD/SGD retesting 1.27 handle, SGD IPO-driven inflows?
FXstreet.com (Bali) - USD/SGD keeps on pressing against 1.27 resistance, which so far as proven formidably strong following the first attempt to break through it last Dec 2013.
Following a sudden dip towards 1.26 during thin market conditions, the USD has seen strong bids returning ever since - 5th day since lows found -, forming a "V" shape type of move aiming to claim territory above 1.27. If a clean breakout is confirmed, no much resistance is seen until 1.28.
On a fundamental note, the Singaporean Dollar may find it difficult to attract much buying interest, following the Dec PMI of 49.7 vs 50.8 last, which should keep any pullback relatively shallow.
There is also some talk of potential SGD inflows on South Korean retail giant Lotte Shopping, currently seeking regulatory approval in Singapore for an initial IPO that could raise up to US$1 billion.
From Dow Jones: "One of those with knowledge of the deal said approval from the Singapore Exchange could take 10 to 15 days. If it is approved, Lotte will be able to start testing investors’ appetite for the IPO."
Following a sudden dip towards 1.26 during thin market conditions, the USD has seen strong bids returning ever since - 5th day since lows found -, forming a "V" shape type of move aiming to claim territory above 1.27. If a clean breakout is confirmed, no much resistance is seen until 1.28.
On a fundamental note, the Singaporean Dollar may find it difficult to attract much buying interest, following the Dec PMI of 49.7 vs 50.8 last, which should keep any pullback relatively shallow.
There is also some talk of potential SGD inflows on South Korean retail giant Lotte Shopping, currently seeking regulatory approval in Singapore for an initial IPO that could raise up to US$1 billion.
From Dow Jones: "One of those with knowledge of the deal said approval from the Singapore Exchange could take 10 to 15 days. If it is approved, Lotte will be able to start testing investors’ appetite for the IPO."