Singapore allows it’s currency to trade within a certain band and they widened this band slightly this morning in what is in current circumstances effectively a mild revaluation of the SGD.
This move obviously spooked a lot of USD longs against all other currencies and so we saw some major spikes higher in AUD/USD and EUR/USD. The move in the latter was primarily stop-loss driven as traders had been eyeing stops above 1.4040 and they got the chance to get them ‘done’.
Now that the big stops are out of the way, we should see a bit of calm return to the market but one side of the market remains much weaker than the other ie USD longs will remain nervy.
