ICDX Launches USD/SGD and 3 Other Forex Pairs

USDSGD Transaction Opportunity, Will it Be as Big as the “Port”?

Singapore is well known by the global community as a hub that connects one country to another. The liaison role has become one of the major sources of state income for Singapore to be able to develop its economy to date.

As is well known, the role of the Singaporean state is crucial, through PSA Corporation Limited Port and Jurong Port, bringing Singapore to become a transit and commodity transfer center which capable of connecting to 600 ports in 120 countries. As an illustration, the Singapore port is capable of accommodating up to 1,000 ships and by Indonesia itself the port in Singapore is used as an export transit port for a number of commodities.

Is USDSGD potential as attractive as the port?

Apart from being one of the "distributors" of ships to countries in the world that has succeeded in making Singapore's economic conditions appealing, the SGD currency also looks attractive for trading, apart from Singapore's position which is not only a Port Hub but also a trading hub for a number of countries in the world. Based on the data obtained, USD/SGD is considered as one of the most frequently traded currency pairs with the interest rating being ranked 10th, in addition, based on data from the Bank of International Settlements, USD/SGD currency pair transactions reached 1.6% of the total currency transactions in 2016.

In the last 4 years, the average movement of the USD/SGD currency is above 0.14% with daily movements reaching 1.15% in 1 day. The daily fluctuations and maximum movements look quite attractive if transactions are carried out on a daily basis. For information, unlike other Asian currencies, the USD/SGD currency pair has implemented a free float policy so that in terms of movement it will be quite interesting in the future.

However, Which Sentiment Can Affect USDSGD Price Movements?

One of the most dominant things is the sentiment originating from the USD currency, with the United States currently in a phase of tightening economic policy, where the market is currently expecting and wary of the US Central Bank being more optimistic and faster in raising interest rates. throughout 2022. This tightening of economic policies usually has a direct impact on the performance of the USD.

Meanwhile, from the domestic side, Singapore's economic condition in general relies on the service sector through the provision of services to the financial industry and especially hub services provided through specially regulated ports. Meanwhile, in terms of the goods export sector, electronic products occupy the largest portion of Singapore's trade.

USDSGD Fluctuating Price Movements

It is seen in the last 1 year or so, the movement of USD/SGD is in a flat trend but shows an interesting range, which ranges from 1.3410 to the 1.3700 zone.

ICDX Launches USD/SGD and 3 Other Forex Pairs

To take advantage of this USD/SGD movement, the USD/SGD currency pair is available on GOFX with a contract size of SGD 1,000, so the opportunity to trade becomes more affordable especially with a trading margin of around $6 /lot.

Together with USD/SGD Micro, ICDX also launched three other forex pairs, namely NZD/CAD Mini, EUR/AUD Micro, and GBP/AUD Micro. These four contracts complete the collection of forex incorporated in GOFX products.