The most relevant sources of SGD to HKD news for traders are the MAS and HKMA. Both these organizations take decisions that will have a fundamental impact on the value of the respective currency. As such, this will affect the SGD to HKD rate and can create conditions where traders may wish to change their strategies.
MAS decisions can include measures to control inflation in Singapore or policies to make sure it retains its competitive edge as an exporter. The city-state benefits from close trading links with its larger neighbours like China. As such, investors should look to the price of commodities and natural resources as possible influences on the SGD to HKD rate.
The effect of MAS actions has been to stabilise prices and encourage real GDP growth. This can often help Singapore resist wider economic trends. For many, it makes it a haven for investors too – with the SGD to HKD pair proving useful to traders who pursue carry trading strategies.
China’s importance to Singapore as a trading partner is also felt in Hong Kong – influencing the SGD to HKD rate politically and economically. But US economic decisions also impact the value of HKD due to its currency peg. As such, traders should note any announcements made by the Federal Reserve and how the HKMA reacts when investing in the SGD to HKD pair.