Singapore Stocks (SGX) Market News

The sterling managed to recover from its Asian session low of 1.5912 overnight on the back of a significant rally in EUR/USD, as sentiment once again flipped to mildly positive ahead of the crucial Greek parliamentary vote in the coming days. It traded to a high of 1.6010, before retreating slightly to close the session at 1.5987. From a technical perspective, yesterday’s failure to finish below crucial March support at 1.5912 was a short-term victory for the bulls, with price action printing a bullish pin bar reversal and showing a rejection of the softer prices. A move to the upside through yesterday’s high of 1.6010 could trigger further gains, as shorts are forced to buy back their positions. However, a break down through yesterday’s low would likely see selling accelerate and target the 1.5750 region of support. On the economic calendar, there are a few significant releases tonight including the current account and final GDP readings at 6.30pm (Melbourne time), to be followed by the inflation report hearings at 7pm (Melbourne time). A continuation of the recent dovish tone from the Bank of England is expected, and has the potential to trigger a bearish reaction from cable traders. Ben Potter, Australia