• Sell SGD/THB via 6 months forward outright: standard Chartered

    Source: FxWire Pro - Commentary / 29 Jan 2015 09:01:35   Europe/London

    Quotes from Standard Chartered:

    -We recommend selling SGD-THB via 6M forward outright, following the extraordinary inter-meeting policy easing by the Monetary Authority of Singapore (MAS).

    -While the SGD NEER still has an appreciation stance, we like selling the SGD against the Thai baht (THB), a strongly non-consensus view, and upgrade the shortterm recommended FX weighting on the THB to Overweight from Neutral.

    -In ou rview, Thailand is a significant winner from (1) the collapse in oil and (2) more specifically, the fall in the Japanese yen (JPY). Japan is Thailand's second-largest trading partner and the largest single source of Thai imports. Low inflation and wage growth, coupled with a weak JPY, is helping to make Thailand more competitive.

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