From the Monetary Authority of Singapore, published today:
“MAS will therefore re-centre the exchange rate policy band at the prevailing level of the S$NEER. Further, we will shift the policy band from that of a zero percent appreciation to one of modest and gradual appreciation. There will be no change to the width of the policy band. MAS will continue to be vigilant over developments in the external environment and their impact on the domestic economy, and stands ready to curb excessive volatility in the S$NEER.”
This is a good example of the market telling you that something is happening. The breakout in USD/SGD in the past few days was seemingly in the expectation of a reduction in the trading band. I didn’t know the MAS was meeting today, although I did know that there was an expectation they would move the band some time around now. It is also a good example of how luck can work in one’s favour!
Here is a chart of USD/SGD: