The USD/SGD currency pair can hardly be regarded as accessible in the foreign exchange market. This exotic asset comes with a modest spread and decent volatility that drops a hint at the possibility of earning a good profit.
Despite the status of an "exotic" currency, Singapore's currency stands out from the rest of the group. This Asian country boasts a highly developed and healthy economy. The matter is that exotic currencies are typically associated with developing countries. That's why this country's asset is often classified as a semi-exotic currency. The given currency pair displays the value of the evergreen buck expressed in the Singapore currency.
Unable to pass more than 120 points a day, this pair is low volatile. In terms of volatility, that's one of the most preferred Forex assets.
You'd better trade this pair on Wednesday. The calmest day for this currency pair is represented by Monday. The Asian or American trading session demonstrates the maximum activity on this pair. That's the period when most trades on this asset take place. The European trading session has a minor effect on this currency.
The American economy appears to be the most powerful in the world. The bulk of its GDP is formed by the services and trade sector (80%). As for the industrial sector, it amounts to nearly 19.2% of the country's GDP. The rest of its GDP is occupied by agriculture.
International and domestic tourism happens to be one of the fastest developing sectors of the US economy, while its effect on the country's GDP is minor. Global trade matters in the US economy. The US key trade partners include Japan, China, Mexico, and the European Union.
A tiny island country in Southeast Asia, Singapore leaves many of its neighbors behind in terms of economic potential. This country belongs to the well-known group of four "Asian tigers," where it stays in the company of South Korea, Hong Kong, and Taiwan. Singapore has a strong economic influence on all nations of the region.
The services and trade sector form 73.4% of the country's GDP. As for the industrial sector, it's represented by 26,6%. The chemical sector and shipbuilding are traditionally strong branches of the country's economy. It's one of the critical exporters of up-to-date technology in the global market. As for the country's agriculture, it occupies only 0.1% of its GDP.
The country's principal source of income is represented by international trade. Singapore's domestic market is relatively small. The state acts as a mighty financial and exchange platform in Asia. The principal trade partners of Singapore are represented by Malaysia, Japan, Hong Kong, and the United States.
The country's major financial institution keeps the Singapore dollar in a narrow range, the boundaries of which are secret. If the significant banknotes the national currency goes beyond the set limits, the situation is fixed with an intervention.
You need to consider both technical and fundamental factors to trade this currency pair successfully. You should be aware of all the critical news of the Singapore and US economies. Technical analysis will assist you in spotting the most convenient points for opening and closing your trading positions. It's also advisable to make use of stop loss and take profits orders to minimize your losses and fix profits. To avoid excessive losses, adhere to the rules of money management.