The CAD to SGD exchange rate shows a bearish bias, reflecting recent downward movements. Key drivers include the interest rate differential, as the Bank of Canada maintained rates at 2.25%, while Singapore's Monetary Authority kept its policy unchanged, supporting SGD. Additionally, a soft Canadian manufacturing sector and lower oil prices, which are now around $57, have led to a weaker CAD. The CAD has recently traded at near 30-day lows around 0.9268, within a stable 2.2% range.
In the near term, expect the CAD/SGD to remain within a defined range, influenced by ongoing economic data from both countries. An upside risk could arise from a significant rebound in oil prices above $62, boosting the CAD. Conversely, a downside risk lies in worsening Canadian economic indicators, which may prompt further depreciation of the CAD against the SGD.
