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About the SGD/JPY (Singapore Dollar and Japanese yen)
The SGD/JPY pair is the abbreviated term used for Singapore Dollar and Japanese yen. the Singapore Dollar and Japanese yen, does not have the nickname Before we get into the particulars, what exactly does SGD/JPY rate mean? The exchange rate tells you how many Japanese yen (the quote currency) are required to purchase one Singapore Dollar (base currency). For example, if the pair is trading at 80.76, it means it takes 80.76 Japanese yen to buy 1 Singapore Dolla.
Breaking Down ‘SGD/JPY’
SGD stands for the currency of Singapore, the Singapore dollar. the abbreviation is officially used in the current market, also known as the foreign exchange market, which is the biggest financial market in the world has a daily average volume of over US $1 trillion. The Singapore dollar is one of the most highly traded currencies in the world
Whereas, the Japanese Yen is classified as a safe haven currency. Before the financial crisis of 2008, several investors would take advantage of ultra-low interest rates from the Bank of Japan to borrow massively in Yen and invest the money abroad. However, the interest rate differential among the central banks of the RBA and Japan has squeezed significantly considering the global economic downturn, pointing to the unwinding of the carry trade as the value of the Yen rose.
Correlation is merely a mutual relationship or connection between two or more things.
Positive correlation – The positive relationship merely is when pairs move in tandem with each other.
In the forex world, the CAD/JPY, AUD/JPY, and NOK/JPY currency pairs are positively correlated
Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, USDZAR, USDCNH, and XAUAUD
Gold & Japanese yen: This is why there is often a positive one connection between the Japanese money and gold: both properties are less than zero connection with the greenback and both are taken into account safe places of safety. however, the relation is not an error less connection, This is because gold is not merely a that possibly taking place in addition to the U.S.dollar, but also to the current money-related system based on Fiat money used in countries. as an outcome of that, it some cases the Japanese money and the dollar both come out badly (or profit) get onto land against gold.
Economic Events: The movement in Singapore and Japanese economic events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Singapore Dollar or the Japanese yen, causing fluctuations in the SGD/JPY exchange rate.
Major Economic Events
Gross Domestic Product – the gross domestic product is the central measure of economic growth in the region.
Employment Change – The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.
Consumer Price Index – Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central
Industrial Production – This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.
What Determines the SGD/JPY Exchange Rate?
Several factors can impact the SGD/JPY rate valuation, including:
MAS & BOJ Monetary Policies: Monetary Authority of Singapore and Bank of Japan control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency
The SGD/JPY is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $9.08