BNY’s Head of Markets Macro Strategy Bob Savage highlights USD/SGD as the weakest non-carry pair over the past month, with sustained net selling pressure. However, the last two sessions have seen softer outflows, suggesting momentum is turning. BNY warns SGD is at risk of an unwind into month-end after its strong February performance.

SGD strength seen vulnerable into month-end

"USDSGD was the worst-performing “non-carry” pair over the past month, as its monthly average flow magnitude was even higher than EURUSD."

"The pair has been net sold for almost three consecutive trading weeks, but the past two sessions have also been the softest during this run."

"This is a clear sign of momentum reversal coming through."

"We note that SGD is at material risk of an unwind through month-end after a strong run in February, based on iFlow."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)