GBP/SGD is a cross-pair, where the pound is the main currency (base), and the Singapore dollar is the currency that is quoted. If you look at the forecasts, you will see that the GBP/SGD pair is not the best for long-term investments, but is well suited for short strategies.
The British pound (or pound sterling) is the official currency of the United Kingdom and its territories. The pound is marked with a £ and has a currency code of GBP. One of the most widely traded currencies in the foreign exchange market, in US dollars, euros, and yen. The pound is the oldest currency that is still used around the world and is also the third-largest reserve currency in the world. The pound is divided by 100 pence (p) and controlled by the Bank of England. Quid is a generic term for a pound.
The Singapore dollar is indicated by the symbol $ and has the currency code SGD. This is the 14th most traded currency in the world, accounting for about 1% of the global volume. About $ 33 billion is sold daily in the foreign exchange market, including spot and forward transactions. The currency is regulated by the Monetary Authority of Singapore and includes banknotes in the amount of 2, 5, 10, 50, 100, 500, and 1000 dollars. The notes depict Yusof bin Ishak, the country's first president, on the one hand, and civilian illustrations, on the other.
The MAC determines monetary policy in Singapore. The policy is established by the Treasury and Internal Markets Department of the Bank, which meets every two weeks. The Department is responsible for managing the exchange rate through intervention in foreign exchange markets and regulating the liquidity of the banking system through money market operations and liquidity. The Bank publishes monetary policy reports twice a year.
Thanks to Singapore's ongoing efforts to maintain currency stability and fight inflation, some traders have come to view the currency as a haven and currency intermediary in the Southeast Asian region. Also, since 1967, Singapore has entered into an exchange agreement with Brunei, which means that their currencies can be used in their respective countries.
Singapore's currency weakened in mid-2015 under the influence of China, but the country's authorities do not allow SGD to depreciate completely. Singapore's economic government bloc has recently been trying to maintain currency stability amid inflation forecasts and efforts to stimulate the local economy.
Therefore before dealing in pair is desirable to carry out its preliminary analysis based on the base indices of the USA. Although the US dollar is not connected with the couple, it has a significant effect on each currency in the pair GBP/SGD. In addition to the US dollar, activity depends on the speed of dynamic changes, according to critical macroeconomic data from the United Kingdom and Singapore.
The assignment of services in the following sectors is some of the leading sectors of the developed British economy:
In the Singapore economy, the sector of the industry is the leader in southeaster, Asia. The country has the largest oil wells in the region. For this reason, the Singapore dollar strongly depends on the world prices of the oil. The pound is very volatile compared to the Singapore dollar, which is especially noticeable in European and Asian sessions. This property can be used to exchange the GBP/SGD currency pair for a quick profit in short and medium-term strategies.