Trading GBP/SGD

The GBP/SGD is a popular currency pair for traders looking to make a profit. The volatility of the GBP coupled with access to Asian markets through the SGD makes for an attractive investing proposition. But with a one-hour window when both the European and Asian markets are open, capitalising on the GBP/SGD exchange rate isn’t straightforward. This page will guide you through trading the GBP against the SGD, from understanding exchange rate conversions to using charts to make forecasts. We also detail the best times to trade the GBP/SGD.

GBP/SGD Explained

The GBP to SGD currency exchange shows how much the GBP is worth when measured against the SGD. And while the exotic forex pair is not traded as often as the majors, it still enjoys popularity.

The British pound is also known as “Sterling” and is the 4th most traded currency in the world. The Singapore dollar is sometimes nicknamed the “Sing” and is the 12th most traded currency.

GBP/SGD is often seen as a speculative investment. This means it carries a higher level of risk but can open the door to substantial profits.

Why Day Trade GBP/SGD?

As a popular forex pair, GBP into SGD is often highlighted on live trading platforms and exchanges. But why do so many day traders opt to pursue profits from this pair?

• Prevalence – Both GBP and SGD are popular currencies to trade. Their size on the market leads to an abundance of relevant financial and economic data being released. Following this can help to give you a good idea of the GBP vs SGD outlook as well as potential forward rates.
• Volatility – While SGD has been touted as a safe haven currency, GBP is exceptionally volatile. This is because the UK economy is susceptible to so-called stagflation – a mixture of stagnant economic growth and high inflation. High volatility offers greater potential to make profits when placing GBP/SGD spot trades.
• Growth potential – The GBP/SGD outlook is positive. GBP moved higher in 2021 after a volatile 2020. SGD is also expected to strengthen as improvement in global risk appetite continues to weigh on the US dollar (USD). Use a GBP/SGD chart to see how the currency pair has performed so far, and what the current trends look like.

GBP/SGD History

The forex markets were a different place when GBP and SGD were first introduced as currencies.

The Singapore dollar was first issued in 1965 after the breakdown of the monetary union between Malaysia and Brunei and remains interchangeable in both countries.

The value of the Singapore dollar was originally pegged to the Great British pound (GBP) at a rate of 8.57 to 1. These artificial pegs determine the value of the currency. In the early 1970s, this peg was briefly moved to the U.S. dollar before being pegged to a hidden basket of foreign currencies between 1973 and 1985. Since 1985, Singapore has allowed its dollar to float within an undisclosed range, which is monitored by the Monetary Authority of Singapore (MAS).

Best Times To Trade GBP/SGD

The best times to trade are at market opening hours. The London / European market is open 7 am GMT – 4 pm GMT. The Asian market is open from 11 pm GMT – 8 am GMT.

Part of the attraction of forex day trading is that you can buy and sell 24-hours a day. While this is true, it doesn’t mean you should. Instead, you want to trade when the pair is active, with plenty of volume and volatility. If you’re day trading with GBP/SGD, volume charts show the most active period is when both London and Singapore are open. There is a key one-hour window from 07:00 to 08:00 GMT when both of these markets are open.

Note if you trade outside of these times may see an increase in costs and spreads which can cancel out profits.

You can also time trades to buy GBP with SGD ahead of, or upon the release of key economic data. Planning for these releases, and how it might affect the GBP to SGD exchange rate, requires two-sided research. This is because local (U.K.) financial news can move popular GBP pairs with the same intensity as news in other countries. Note, UK economic data is usually released early in the morning.

Influences On Movement

Several factors influence the GBP/SGD currency pair. Understanding these will help you run your forex analysis today.

Economic Growth

You will find your GBP to SGD technical analysis much easier if you have a thorough understanding of what influences the FX rate. One big factor is the economic strength of each country.

The UK has the 6th largest economy in the world. Its economy is driven largely by its service sector, mostly in finance, insurance and business services.

Singapore on the other hand has a highly developed free-market economy. It is characterised by stable prices and an open environment free of corruption. Singapore’s economy is driven by exports, particularly in consumer electronics, IT products, pharmaceuticals and other chemicals.

You can find economic data about each country easily online. You can also find key economic data at most major news outlets. This will help you to make GBP forecasts against SGD.

Political Influences

Another crucial factor is the political landscape. Instability, as seen in the Brexit referendum, can influence the direction of the currencies. As of 31st Jan 2020, the UK is officially no longer a member of the European Union but trade negotiations are still ongoing. These negotiations will be crucial in improving the stability of GBP.

The challenge comes in keeping an eye on the numerous political events within each country. So, keep abreast of the latest political and economic news.

A useful tip is to combine recent events with GBP/SGD historical data on a simple Excel alongside your platform and charting analysis. This may help you make more accurate forecasts for 2025 and beyond.

Central Banks

Decisions from each country’s central bank can impact the live GBP v SGD rate as well as future predictions. For example, changes to interest rates or wider monetary policy, such as steps taken to ease or improve the rate of inflation, can impact the currency pair. With that in mind, keep an eye on announcements from the Bank of England (BoE) and the Monetary Authority of Singapore (MAS).

The Bank of England moved UK rates to a record low of 0.1% in 2020, to help ease the economic impact of the Coronavirus pandemic. Negative interest rates are also on the cards, which could affect the value of 1 GBP into SGD.

Understanding GBP/SGD Live Rates

Find a forex broker that offers easy access to real-time forex rates. Some are electronically connected to several global banks. This means they can offer the best GBP/SGD currency rates while their algorithms ensure servers can update rates tick-by-tick in less than a second.

Other top brokers include IG and Plus500. Along with exchange rate history, they also provide 1 year, 10 year and 20 year GBP vs SGD charts.

You can also get live GBP/SGD rates, historical data and currency converters at other providers, including:

• Yahoo Finance
• OCBC Bank
• Reuters
• DBS
• FT

Final Word On Trading GBP/SGD

There are several factors to consider when day trading GBP/SGD. The volatility of the GBP can help you generate profits quickly, but timing trades to get the best GBP to SGD rate is key. When making exchange rate forecasts it’s also important to stay on top of the latest political and economic news. Finally, make sure you consider your risk tolerance and use stops and losses to protect your capital.

Find out more about forex trading.

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