USDSGD

Choosing easily predictable trading tools is the shortest path to success. Many people have been working with the euro/dollar for years and cannot learn how to make any meaningful forecasts, let alone actually make money.

The banality and stupidity of the situation is that the vast majority do not even try to get acquainted with other possibilities, and when exotic instruments are mentioned, they themselves build a wall of rumors and speculation.

Self-doubt and a bunch of myths that it is more difficult to work on exotic currency pairs because they are unpredictable deprives you of a second chance to master the profession of a trader.

In today's article we will talk about the so-called exotic currency pair USDSGD. It consists of two currencies, namely the American dollar (USD) and the Singapore dollar (SGD).

Many people classify this currency pair as purely exotic, but if you look at the countries whose currencies are included in the pair, it is quite difficult to call it exotic. The pair is characterized by long-term trends and wide sweeping pullbacks, which allows trend-following strategies to provide good profits.

Scalping for this instrument is not effective, since the minimum spread that I have ever encountered for this instrument was at least 5 points, and if we speak on average for various brokers, the spread is 7-10 points.

However, let's look at each currency separately to draw conclusions about the factors that affect the instrument as a whole.

USD is the largest world currency, which ranks first in terms of turnover in the world. The US dollar is influenced by many factors, especially recently political ones due to the deterioration of relations with Russia. However, before delving into politics, it is worth noting that the United States is considered the world's largest consumer of oil and petroleum products.

Therefore, a relationship can always be found between the dollar and oil prices. Also, do not forget that industry is very developed in the United States, so news that affects industry and various indices that are related to production immediately resonate with the US dollar exchange rate.

By the way, the US President lifted the 40-year ban on oil exports, so in the near future you can see a new player in this market, so I advise you to evaluate the oil and oil products market in great detail. When analyzing the dollar exchange rate, you should not ignore macroeconomic indicators, such as GDP, trade balance , and unemployment data.

SGD is the national currency of Singapore, the so-called country of economic dreams. Singapore is a small country, but the economic miracles that happened in it became just an example of how the state needs to develop. The turnover of the Singapore dollar on a global scale is quite large and ranks 15th in the world.

Unlike many oil producers, Singapore prefers to trade refined products, so prices for oil and petroleum products directly affect the SGD rate. Also, do not forget that Singapore is the largest exporter of equipment for the oil industry, so industry data is very important for forecasting the exchange rate.

Singapore is very convenient for business due to low taxes, which is why the world's largest corporations keep their main offices in it, and the constant influx of investments by them makes a great pattern between the SGD rate and the shares of the largest companies. 

Singapore's economy is greatly influenced by its partners, namely China, Malaysia, and others. Do not forget about important macroeconomic indicators such as GDP and unemployment data.

In conclusion, I would like to note that this currency pair is suitable for lovers of quiet investments, since the quotes are systematic and characterized by protracted trends. The maximum activity of USDSGD occurs during the American and Asian trading sessions.

The currency pair lends itself to both fundamental and technical analysis due to the undulation of trend movements.