The weak upward trend which we saw last month was replaced by a weak downtrend, although some might say that it is in fact a flat trend. Still, according to the chart, there is a tendency for a gradual strengthening of the Singapore dollar and there are many conditions for further strengthening against the EUR because it is losing positions amid the tense political situation in the EU and elections in several key countries in Europe.
On the other hand, the SGD has only strengthened. The indices of profitability for the SGD grew slightly. Additionally, the volume of retail sales saw a mild increase in January, which confirms the stable status of the Singaporean economy. Moreover, the strengthening of Singapore's currency was supported by recent published data about China's economy: the retail price index PPI rose by 6.9% in January, exceeding forecasts twice, while the volume of exports grew by 7.9% last month. The volume of imports increased too by 16%, which is also good for Singapore, the key supplier of components for electronics manufacturing. There are perspectives for Singapore's export volume increasing.
The MACD and Stochastics oscillators show Buy signals. In short-term trading trades against the trend, on the price correction can be effective. In the medium term the best course is to open the deals to sell, taking into account some perspectives for a further intensification of the downward trend.
