Recent trends in the SGD to CAD exchange rate have been influenced by a combination of significant developments affecting both currencies. The SGD has shown resilience, trading at 7-day highs near 1.0814, which is slightly above its 3-month average, and has remained stable within a 1.5% range during this period. Analysts attribute part of this stability to Singapore’s economic recovery and its status as a safe-haven currency amidst global uncertainties.
In Singapore's recent economic landscape, the Monetary Authority of Singapore (MAS) eased its monetary policy earlier in 2025, which did weigh on the SGD. However, stronger-than-expected GDP growth of 2.9% in Q3 2025 allowed MAS to maintain its monetary policy, supporting the SGD against the backdrop of external pressures. Furthermore, the SGD's defensive characteristics in times of financial stress have also contributed to its strength.
On the Canadian side, the CAD remains influenced by the volatility of oil prices, given that oil is a fundamental part of Canada's economy. Currently, oil prices are trading at approximately 64.29, which is 2.1% below their 3-month average. This decline can pressure the CAD as reduced revenues from oil exports typically weaken the currency. Recent fluctuations in oil prices, trading in a significant 15% range from 60.96 to 70.13, further highlight the uncertainty surrounding commodity-linked currencies like the CAD.
Compounding the situation for Canadians, the Bank of Canada has implemented two recent rate cuts, bringing its policy rate to 2.25%. These cuts have been driven by a weakening job market and economic uncertainties that echoed in the U.S. labor market data, which indicated over 150,000 job cuts in October. While this might exert indirect support to the CAD, the current narrative remains cautious due to ongoing economic pressures.
Given these dynamics, the CAD may face upside potential towards the end of the week, particularly if oil prices show signs of stabilization or recovery, as they have shown a correlation with the CAD's value. The CAD's path forward will depend heavily on both oil market trends and further economic developments, while the SGD may continue to leverage its strength through stable economic growth and its safe-haven appeal. As analysts refine their outlooks, both currencies will be closely monitored for any signs of shifts in sentiment or policy adjustments that could impact their exchange rate.
