USDSGD
Choosing easily predictable trading instruments is the shortest path to success. Many
trade the euro/dollar for years without learning how to make any meaningful forecasts, let alone make real money.
The banality and stupidity of the situation is that the overwhelming majority do not even try to get acquainted with other possibilities, and when exotic instruments are mentioned, they erect a wall of rumors and speculation in front of themselves.
Lack of confidence and a plethora of myths about exotic currency pairs being more difficult to trade because they are unpredictable deprive you of a second chance to master the profession of a trader.
Today's article will discuss the so-called exotic currency pair USDSGD. It consists of two currencies: the US dollar (USD) and the Singapore dollar (SGD).
Scalping on this instrument is not effective, since the minimum spread I have encountered for this instrument was at least 5 pips, and if we talk about the average spread across various brokers, the spread is 7-10 pips.
However, let's look at each currency separately to draw conclusions about the factors that influence the instrument as a whole.
The USD is the world's largest currency, ranking first in terms of turnover. The US dollar is influenced by many factors, particularly political ones recently due to the deteriorating relations with Russia. However, before delving into politics, it's worth noting that the US is considered the world's largest consumer of oil and petroleum products.
Therefore, a correlation can always be found between the dollar and oil prices. It's also worth remembering that the US has a highly developed industrial sector, so news affecting industry and various production-related indices immediately impacts the US dollar exchange rate.
Incidentally, the US President lifted the 40-year ban on oil exports, so we could see a new player entering this market soon. So, I recommend a very detailed assessment of the oil and petroleum product markets. When analyzing the dollar exchange rate, don't ignore macroeconomic indicators such as GDP, the trade balance , and unemployment data.
The Singapore dollar is the national currency of Singapore, the so-called economic dream country. Singapore is a small country, but its economic miracles have become a shining example of how a country should develop. The Singapore dollar is quite highly traded globally, ranking 15th in the world.
Unlike many oil producers, Singapore prefers to trade refined products, so oil and petroleum product prices directly impact the SGD exchange rate. It's also worth remembering that Singapore is the largest exporter of oil production equipment, making industry data crucial for forecasting the exchange rate.
Singapore is a very attractive place to do business due to its low taxes, so the world's largest corporations maintain their headquarters there, and the constant influx of investment creates a strong correlation between the SGD exchange rate and the shares of major companies.
Singapore's economy is heavily influenced by its partners, namely China, Malaysia, and others. Important macroeconomic indicators such as GDP and unemployment figures should not be overlooked.
In conclusion, I'd like to note that this currency pair is suitable for those who prefer a more relaxed approach to investing, as quotes are consistent and tend to exhibit long-term trends. USDSGD is most active during the American and Asian trading sessions.
The currency pair lends itself to both and technical analysis
