Singapore Dollar Rises as Volume of Trade Continues to Decline 18/11/19

The Singapore dollar rose against the USD even as the country released weak trade numbers for the month of October. Non-oil exports declined by 12.3% in the month. This followed an 8.1% decline in September. Exports declined to most countries including Japan, EU and the US. Taiwan was a bright spot for Singapore’s exports. Non-oil imports decreased by 2.3% in October after the 2.9% growth in September. Meanwhile, total trade declined in October, which is a major issue for the country’s economy. Exports have been in the red since October last year.

USD/SGD Technical Analysis

The USD/SGD pair reached the important resistance level of 1.3635 last week. The pair then started declining, which saw it reach a low of 1.3598 on Friday. The pair rose today after Singapore released its trade numbers. It is now trading at 1.3605, which is slightly below the 61.8% Fibonacci Retracement level. The price is along the middle line of the Bollinger Bands while the RSI has been moving higher. The pair may resume the downward trend and test the 50% Fibonacci Retracement level of 1.3597.

Euro Jumps Against the USD

The euro rose against the USD as the market continued to react to positive data from the region. Last week, the market received a number of economic data from Germany and the rest of the European Union. Numbers showed that the European economy was reacting positively to the actions by the European Central Bank. The market will receive the ECB’s financial stability report today. The FSR is a report that is published twice a year. It provides an overview of potential risks to the financial stability in the euro area. The report promotes awareness in the financial industry. The German central bank will release the monthly report shortly afterwards.

EUR/USD Technical Analysis

The EUR/USD pair rose to a high of 1.1060 as the market waited for the financial stability report. This price is along the 61.8% Fibonacci Retracement level on the four-hour chart. The RSI has soared to almost the overbought level of 70. The same is true with the main and signal lines of the Stochastic oscillator. Today’s movements will depend on what the ECB says. This could see the pair rise or move lower.

China Stocks Rise on Trade Optimism

Trade will be the main issue today. This is after the US and China issued reassuring statements on the ongoing trade war. Chinese officials said that the two countries had agreed on principle to remove tariffs two weeks ago. This was confirmed by Larry Kudlow on Friday. The Chief Economic Advisor said that the two countries were continuing to negotiate. This was also confirmed by a leading Chinese newspaper. A deal between the two countries would reassure the market and help accelerate global growth. Chinese stocks and American futures rose today.

HKD50

The Hang Seng rose today on optimism of trade. The index rose even after a weekend of increased violence in Hong Kong. The index rose to a high of $26580 from the previous low of $26168. The price is along the 14-day moving averages and slightly above the 28-day moving averages. The RSI has moved from Friday’s oversold level of 20 to a high of 50. The index will likely react to more trade talks today.