The Canadian dollar (CAD) has recently been experiencing limited movement, primarily influenced by fluctuations in oil prices, given Canada's status as a major oil exporter. Currently trading at 0.9385 against the Singapore dollar (SGD), the CAD is positioned just 1.0% above its three-month average of 0.9293, moving within a stable range of 2.0% from 0.9206 to 0.9392. Analysts highlight that oil prices have been volatile, with the recent price of Brent Crude oil at USD 60.89 falling 3.9% below its three-month average of 63.35, accompanied by a significant fluctuation range of 18.8% from 59.04 to 70.13. This has applied downward pressure on the CAD, as lower oil prices often lead to reduced export revenues for Canada.
Moreover, experts note that ongoing trade policy uncertainties, particularly tariffs imposed by the U.S. on Canadian imports and subsequent retaliatory measures, have intensified market volatility and contributed to CAD depreciation. In the wake of these developments, retail sales data is anticipated to play a crucial role in determining CAD strength, with analysts projecting a potential increase if sales rebound.
On the other side, the Singapore dollar (SGD) has also been affected by global trade dynamics and local economic policies. The Monetary Authority of Singapore (MAS) has made recent adjustments to its policy, including an easing of the dollar's appreciation to bolster economic growth amid lower-than-expected inflation. Furthermore, external pressures, such as tariffs on key Singaporean exports, have added to the downward pressure on the SGD, particularly influencing market sentiment and investor confidence.
Collectively, both currencies are navigating a complex landscape shaped by commodity prices, economic indicators, and geopolitical developments. Markets suggest that continued attention to oil price trends and economic data from both Canada and Singapore will be essential in assessing future fluctuations in the CAD/SGD exchange rate. As global trade relations evolve, the performance of the CAD and SGD will depend heavily on the outcomes of these economic indicators and international policies.
