EBENE, MAURITIUS -- (Marketwire) -- 01/21/13 -- In his Market Brief of The Week for 21 January, leading global foreign exchange trader, educator and author Mario Sant Singh, focuses on risk-on commodities sentiment with prices at a 3-month high, amidst a jump in U.S. housing starts and the first China growth acceleration since 2010 - with traders focused on the first Chinese Manufacturing Purchasing Managers' Index of the year.
According to data on the U.S. Commodity Futures Trading Commission, speculators increased net-long positions across 18 futures and options by 4.3% to 682,521 contracts last week, the biggest gain since 27 November 2012. Wagers on a soybean rally rose for the first time in four weeks on signs of improved demand for supplies from the U.S., the world's biggest exporter.
Said Mario Sant Singh - whose views are widely sought after in the Forex industry, "Net-long positions in Gold rose 8% to 99,458 contracts, the biggest gain in two months. Those for Silver climbed 6.6% to 22,397, the first advance in seven weeks. According to Cameron Brandt, the director of Massachusetts-based EPFR Global, which tracks money flow, money managers added a net USD861 million to commodity funds last week."
"With the risk-on sentiment, the mighty Singapore Dollar is expected to underperform against most regional counterparts this year," he added. "This is due to the pickup in the global economy and faster growth among its peers, so it reduces demand for Singapore's top-rated securities," explained Mario. According to Singapore Prime Minister Lee Hsien Loong, the SGD240 billion economy will expand 1% to 3% this year, less than the past decade's 6% average.
"In Southeast Asia, The Philippines, Thailand and Malaysia are poised to fare better than Singapore," said Mario, "as their Gross Domestic Product (GDP) may rise at almost double Singapore's pace in 2013."
Singapore's currency strengthened 5.8% in the first three quarters of 2012, the best performance in Asia, as investors sought the relative safety of Singapore's AAA rated assets. This capital flow happened before the proposed resolution of U.S. tax increases and spending cuts that threatened to tip the world's biggest economy into recession. In the past three months however, the currency weakened 0.7% against the USD, the third-worst performing Asian currency after the Japanese Yen and the Indian Rupee.
But the Thai Baht appreciated 3%, the Peso, 1.7% and the Ringgit, 0.9 percent.
Key events traders will focus on this week include the Bank of Japan (BoJ) Press Conference, the German ZEW Economic Sentiment Index, Australia's Consumer Price Index (CPI), UK Gross Domestic Product (GDP), and the HSBC Flash China Manufacturing Purchasing Managers' Index (PMI).
ABOUT MARIO SANT SINGH
Mario Singh is the Director of Trading & Education at global retail Forex brokerage FXPRIMUS. He has appeared as a guest expert on CNBC more than 35 times to talk about foreign exchange markets, and is a regular contributor to top investment publications and online portals. Known as a brilliant and intense communicator with a unique ability to 'keep Forex simple' and a mission to help every man-in-the-street to trade profitably and responsibly in the Forex market, more than 20,000 people have attended his Forex trading programs. He is the only Forex trader in Asia invited to train Julius Baer Private Bankers - the third largest Swiss Bank, and ICBC, China's largest commercial bank. Mario is also author of the best-selling book, 17 Proven Currency Trading Strategies: How to Profit in the Forex Market. (Wiley Publishing).
FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security and an industry-leading trader toolset that includes free access to powerful trader tools and personal coaching via FXPRIMUS Coach. FXPRIMUS; truly is The Safest Place To Trade.
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