On world financial markets, 2020 has begun the same way 2019 ended. Its waters remain a wild place, one where its waves can capsize the unaware at a moment’s notice. Question now is: how will Singapore dollar perform in 2020?
For starters, a no-deal Brexit remains a frightening possibility. The Trump presidency continues to surprise, to say nothing of the prospect of a Sanders administration. Hong Kong continues to fall from grace, as Beijing tightens the chain around its throat.
Suffice to say, investors are fervently searching for a safe harbour. For many, the Singapore dollar (SGD) is the sturdy port they’ve been searching for. A politically stable crossroads of regional trade, Singapore has long been a favourite of those looking for security. In light of recent events, this city-state has never looked quite so attractive.
Is Singapore dollar a viable play? And if so, how can the resourceful investor play the Singapore dollar to their advantage? That’s the question we’ll explore in today’s blog.
The Singapore dollar: A Financial Lifeboat On The High Seas Of Finance?
The financial community had so much faith in BoJo. Get elected, even if that means making grandiose promises (e.g., Brexit means Brexit). But after the counters record the last ballot, default to reason. After all, there’s no way Boris thinks he can negotiate trade deals in a year, right?
Well, it appears Prime Minister Johnson wasn’t bluffing. Brexit does mean Brexit, regardless of whether the UK, the EU, or financial markets are ready for it. Slowly but surely, smart investors are slowly backing toward the exit, terrified of starting a stampede.
In the two weeks following the UK election, GBP/SGD slid 3.6% from 1.82195 on 13 December to 1.75573 on Christmas Eve.
The Euro isn’t faring much better. The bloc, which faces …Read more