CAD/SGD Outlook: Slightly positive, but likely to move sideways as it is near its 3-month average despite supportive factors for the Canadian dollar.
Key drivers:
- Rate gap: The Bank of Canada's steady interest rate supports the CAD against the SGD, which is currently stable.
- Risk/commodities: Rising oil prices, now at multi-month highs, enhance the Canadian economy and bolster the CAD, given Canada's major oil export status.
- One macro factor: Singapore's Monetary Authority has maintained its monetary policy, indicating a stable environment but may face risks from global trade uncertainties.
Range: CAD/SGD is likely to hold within its recent trading range, as current conditions do not indicate movement toward extremes.
What could change it:
- Upside risk: A significant further increase in oil prices could strengthen the CAD.
- Downside risk: Renewed trade tensions or economic downturns affecting Canada could weaken the CAD.