The US Dollar has strengthened against all of its Rivals in Asian trade today. The catalyst is, once again, a souring of risk sentiment due to surge in Covid-19 infections across the globe. In Tokyo, where the Olympics is taking place, a surge of 3,000 new cases was reported. 

At the same time the flight-to-safety has seen US bond yields plunge. The benchmark US 10-year treasury yield has dropped 4 basis points to 1.25% today (from its 1.29% close). In contrast, other global bond yields are either flat or modestly lower. Which will prevent any USD surges. The Greenback cannot advance much further without yield support.

Economic data released today saw Singapore's Industrial Production rose 27.5% year-on-year in June. According to United Overseas Bank (UOB), one of Singapore's largest investment banks and financial services company, this is the fastest growth since December 2010.

USD/SGD is a good sell at current levels, 1.3612. I've put a stop loss at 1.3652. Take profit at 1.3497. 

USD/SGD - Time to short the Greenback

Jul 27 2021

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