The recent performance of the Canadian dollar (CAD) against the Singapore dollar (SGD) has been characterized by fluctuations influenced by domestic economic indicators and broader market trends. As of early December 2025, the CAD traded at 0.9367, which is notably 1.0% above its three-month average of 0.9275, indicating a strengthening of the loonie within a stable range. The CAD’s appreciation is attributed to a recent drop in Canada's unemployment rate to 6.5%, alongside a robust economic growth of 2.6% in the third quarter, surpassing market expectations.
Oil prices, a critical factor for the CAD given Canada's status as a significant oil exporter, are under scrutiny. Although recent data shows oil prices at 30-day lows near $61.94, 4.1% below their three-month average, any uptick could bolster the CAD further. Analysts frequently note the correlation between oil price increases and CAD strength, as higher revenues from oil exports generally enhance the Canadian economy.
On the other side, the SGD has responded to various monetary policy adjustments and economic performances. The Monetary Authority of Singapore (MAS) has opted for a more gradual appreciation of the SGD in light of stronger-than-expected economic growth, particularly a 2.9% year-on-year expansion reported in October 2025. This backdrop suggests that while the MAS has eased monetary policy, they remain vigilant about external risks, such as U.S. trade tensions that previously pressured the SGD.
As traders assess the future trajectory of both currencies, it is crucial to monitor developments in oil prices, the consequences of MAS's monetary policy, and the ongoing economic performance in both Canada and Singapore. Given the interdependencies traced through commodity prices and policy decisions, fluctuations in the CAD/SGD pair may ultimately reflect not only localized economic shifts but also global market dynamics. The outlook remains cautiously optimistic, influenced predominantly by commodity price movements and potential policy changes from both Canadian and Singaporean monetary authorities.
