The pound sterling (or pound) is the official currency of the United Kingdom and its territories. The pound is denoted by the symbol £ and has the currency code GBP. One of the most traded currencies in the foreign exchange market, behind the US dollar, Euro and yen, is the oldest currency still in use worldwide. The pound is also the third-largest reserve currency in the world. The pound is subdivided into 100 pence (p) and is controlled by the Bank of England. Quid is a common nickname for the pound.
The Singapore dollar is denoted by the symbol S $ and has the currency code SGD. It is the 14th most frequently traded currency in the world, accounting for about 1% of the world’s volume. Approximately US $ 33 billion is sold daily in the foreign exchange market, including spot and futures trading. The currency is regulated by the Monetary Authority of Singapore and has banknotes in the amount of 2, 5, 10, 50, 100, 500, and $ 1,000. The notes depict Yusof bin Ishak, the country’s first President, on the one hand, and illustrations of civic virtues on the other.
The IAU determines monetary policy in Singapore. The system is set by the Bank’s Department of money and internal markets management, which meets at two-week intervals. The Department is responsible for managing the exchange rate through intervention in foreign exchange markets and regulating the liquidity of the banking system through money market operations and liquidity. The Bank issues monetary policy reports twice a year.
Thanks to Singapore’s consistent efforts to maintain currency stability and fight inflation, some traders have come to see the currency as a haven currency and a mediator for coins in the Southeast Asian region. Also, since 1967, Singapore has had a currency interchangeability agreement with Brunei, which means that their coins can be used in each of the respective countries.
Singapore’s currency weakened in mid-2015 under the influence of China’s move to not allow its currency to depreciate at all. Meanwhile, the monetary authority of Singapore has recently been trying to keep the weaker currency on the back of inflation and efforts to stimulate the local economy.
Analysis before trading is best done, taking into account the fundamental indicators of the US, even though the US dollar is not in the pair. At the same time, it has a significant impact on each currency in the GBP/SGD pair. In addition to the US dollar, this trading asset is affected by the speed of dynamic changes in relevant macroeconomic data of the UK and Singapore.
Among the leading sectors of the developed economy of the UK is the provision of services in the areas of:
In Singapore’s economy, the industry is the leader in Southeast Asia. This country is marked by the most significant oil wells in the entire region. For this reason, the exchange rate of the Singapore dollar is highly dependent on the prices of petroleum products worldwide. The pound against the Singapore dollar is very volatile, which is especially evident during the main European and Asian sessions.
You can use this property to trade the GBP/SGD currency pair for quick profits in short and medium-term strategies.