SINGAPORE (Oct 6): The Monetary Authority of Singapore is unlikely to adopt a negative slope for the Singapore Dollar nominal effective exchange rate (NEER) during the October review, after adopting a neutral slope in April. Instead, the Bank of Singapore’s FX Research believes there is a 70% likelihood that MAS leave its policy unchanged. These make it “unlikely that MAS will re-centre the policy band weaker”, says Sim. Having said that, Sim believes MAS will choose to re-centre the midpoint of the SGD NEER downwards, creating a slower growth, instead of imposing a negative slope that leads to depreciation. (See also: Focus on increasing productivity, not manpower: DPM Tharman)So where should investors hop in on the forex bandwagon?

Source: The Edge Markets October 06, 2016 06:00 UTC