The CAD to SGD exchange rate is currently range-bound, reflecting stable recent trading patterns.
Key drivers include:
- The interest rate differential remains steady, with the Bank of Canada maintaining its policy rate at 2.25% while the Monetary Authority of Singapore has eased its monetary policy, impacting the relative strength of both currencies.
- The recent jobs report in Canada demonstrated significant employment growth, fostering confidence in the CAD. However, oil prices have recently stalled at lower levels, exercising downward pressure on the currency.
- Singapore's resilient economic growth and positive forecasts suggest a stable environment for the SGD, supported by its strong non-oil domestic exports.
In the near term, the CAD to SGD exchange rate is expected to remain within its recent trading range. Upside risks exist if oil prices rebound significantly, potentially strengthening the CAD. Conversely, any unexpected deterioration in Canada's economic indicators could apply downward pressure on the exchange rate.