The USD/SGD pair is neither a major, nor a commodity pair. The USD is definitely a major, the SGD on the other hand is not. Still, the SGD commands a disproportionally large amount of influence, considering the size of the economy that backs it.
The world’s top reserve currency, the USD is also the most traded, and the most used in various economic transactions. It is safe to say that the USD is currently the lifeblood of the global economy. Commodities as important as gold and oil are traded exclusively in US dollars.
Controlled by the Federal Reserve through the tweaking of the interest rates, the USD was the first currency to start floating back in the 1970s. The US economy is the largest and most diverse economy in the world. Its main sectors are energy, commodities, manufacturing, banking, as well as agriculture.
The Singapore Dollar is a sort of tiny overachiever in several ways. Pegged to a basket of currencies, it is controlled by the Monetary Authority of Singapore. The strength of the SGD stems from the international assets held by the government of Singapore, used to collateralize all currency in use. This technique has thus far been highly successful: the SGD has risen steadily against the USD essentially since its introduction. Despite the MAS’ tight control, the SGD is indeed considered a floating currency.
As said above, the SGD and the economy of Singapore exert a disproportionally large influence over the global markets, and that is doubly true for the trade relationship of the country with the US. Its economy relying mostly on services, Singapore manages to seamlessly export such services to the US through the internet, despite the geographical distance separating the two countries.
Trading opportunities on this pair will mostly come from the side of the SGD. The political situation in the country and its relations with China are to be watched in this regard.