SGD/CAD Outlook:
The SGD/CAD exchange rate is slightly positive but likely to move sideways, trading just above its 90-day average and within its recent range.
Key drivers:
• Rate gap: The Bank of Canada maintains its policy rate at 2.25%, while the Monetary Authority of Singapore has eased its policy to support growth.
• Risk/commodities: Oil prices are notably high, over 11% above their 3-month average, which supports the CAD given Canada's status as a major oil exporter.
• Economic performance: Canada’s latest job data shows strong employment growth, enhancing confidence in its economy.
Range:
The SGD/CAD is expected to hold within its recent range, with potential for slight fluctuations.
What could change it:
• Upside risk: A strong GDP report from Canada could boost the CAD significantly.
• Downside risk: A contraction in Canada's GDP could pressure the CAD lower.