UOB economist Barnabas Gan reviewed the government’s recent resolution to provide more stimulus measures to combat the effect of the coronavirus pandemic.
“The Singapore Ministry of Finance has taken further steps to combat the COVID-19 pandemic. Given the “rapid conversion situation,” the government will raise S$8.0 billion to cushion the negative economic impact.”
“The measures focus on 3 key aspects: (1) creating jobs and creating new employment opportunities, (2) offering the sectors that have been most affected and (3) positioning Singapore to capture opportunities for post-COVID-19 expansion in the world.”
“There will be no lien beyond the reserves to finance those additional expenses. Instead, it will be financed by reallocating the budget of areas, such as the progression expenditure that has been delayed due to COVID-19. Please note that a S$52 billion plan had already approved the lien on reserves”.
“We recognize three issues that we must not forget about the measures announced. First, Singapore’s labour market is likely to remain weak despite the expansion of the employment agenda. Second, Singapore will need to adapt to the changing economic landscape, given the acceleration of the virtual transition amid a reconfiguration of the global source chain. Third, there are still positive aspects to Singapore’s economy despite the existing economic recession.
The EUR/USD pair helps keep the increase above 1,1900 amid widespread losses in the US dollar and a cautious market environment. The weaker dollar is likely to be related to the fall in US Treasury bond yields.
Gold won floor for the time being in consecutive consultations on Tuesday. The widespread promotion bias in the USD, which led to declining U.S. bond yields, continued to rise. Reluctance to place competitive bets may limit winnings before Wednesday’s FOMC minutes.
The GBP/USD pair extends the advance to 1,3200 against a backdrop of persistent dollar weakness and Brexit optimism. The cable is lifted for the fourth day in a row before the seventh key negotiation between the EU and the UK on post-Brexit relations.
The encryption market is showing symptoms of fatigue, but no one is looking to open short positions. Extreme bullish sentiment weighs on the crypto market. Ripple can escort Bitcoin up if bullies manage to maintain control.
The WTI extended the withdrawal to $43.23 to challenge the previous day’s race. OPEC: shows its willingness to keep up with falling production despite demand uncertainties. The API recorded 3 consecutive share draws, with -4.4M being the last.
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