Forecasts for SGD to CAD
The SGD to CAD exchange rate is currently positioned at a 30-day high near 1.0634, maintaining stability within a narrow range of 3.3% between 1.0506 and 1.0851. This reflects recent fluctuations driven by geopolitical developments and shifts in global economic sentiment. Recently, the outlook for emerging Asian currencies, including the Singapore dollar (SGD), has deteriorated following the announcement of a 10% tariff on Singapore imports by U.S. President Donald Trump. Such measures have increased apprehension about a potential global trade war, causing a downturn in regional currencies like the Thai baht and South Korean won.
Analysts note that while Singapore has circumvented more severe tariffs due to its strong trade relationship with the U.S.—a key trading partner that accounts for 15% of its total trade—the heightened trade tensions may still weigh on the SGD's outlook. The Monetary Authority of Singapore (MAS) continues to manage the SGD's value against a basket of currencies, which may provide a buffer amid external pressures.
On the Canadian side, the Canadian dollar (CAD) has exhibited volatility closely tied to fluctuations in oil prices, as Canada is a major oil exporter. Recent market dynamics show that oil prices have hit 90-day lows near 61.29, significantly below the 3-month average of 70.61, creating added pressure on the loonie. Analysts suggest that the CAD's trajectory will depend largely on oil market trends and investor sentiment in response to further developments in U.S. economic policy and trade relations.
Looking forward, the interplay between these factors suggests a cautious outlook for the SGD to CAD exchange rate. Should oil prices remain weak, the CAD could face downward pressure, while any diplomatic resolution in trade relations may lend support to the SGD. As investment sentiment shifts in response to these geopolitical developments, market participants are advised to monitor economic indicators closely, including oil price movements and central bank policy decisions, to better navigate exchange rate fluctuations in the coming weeks.
