Chart Of The Day EUR/USD: While outlook for EUR is neutral, a move lower to test the major support at /20 cannot be ruled out just yet.

Transcription

1 Global Economics & Markets Research Quek Ser Leang Lee Sue Ann Monday, 03 August 2015 FX Insights Chart Of The Day EUR/USD: While outlook for EUR is neutral, a move lower to test the major support at /20 cannot be ruled out just yet. As pointed out in last Friday s Chart of the Day, despite the sharp drop from the high of /30 last Monday, we are not convinced that the EUR weakness is the start of a sustained down-move. The strong rally during NY session last Friday has eased the short-term downward pressure. That said, unless there is a clear break above , a test of the major support at /20 cannot be ruled out just yet. In other words, the outlook for EUR is still viewed as neutral and we expect choppy trading for the next couple of weeks, likely between and

2 Monday, 03 August 2015 Page 2 USD/SGD: Overview The USD lost its previous gains as it got hit by poor data on Friday. The Employment Cost Index (ECI) increased only 0.2% in 2Q15, the slowest pace on record, against the unrevised 0.7% increase seen in 1Q15, well below expectations for a +0.6% result. The past week also saw the Fed leaving the markets with a sense of ambiguity as to their intentions, but what they intended to do was to turn the focus back to the data. In this regard, two particular indicators in this week s busy docket are important for shaping rate expectations. Monday s PCE deflator is the Fed s favored inflation measure. Friday s July labor report will generate headlines with its non-farm payrolls print, but the policy speculation will center on the wages component the wellspring of inflation. In Singapore, this will be a light week in terms of data releases. It will also be a short working week with the SG50 public holiday falling on Friday (7 August). The July Manufacturing PMI on Monday is expected to drop to 50.1 from 50.4 in June. Meanwhile, the Nikkei Singapore PMI (that measures both manufacturing and services producing industries) is due on Wednesday. Singapore will celebrate 50 years of nation-building on 9 August (Sunday) and the following Monday (10 August) will also be a public holiday. USD/SGD traded in a range of on Friday. The trade-weighted SGD NEER is trading at 0.15% below the mid-point this morning with the +/-0.5% range on the SGD NEER implying USD/SGD within based on current FX levels. S$NEER Last Change: Reduced the slope of the policy band (Jan 2015) Next MAS Meeting: Oct 15 (date yet to be announced) GDP YoY: +2.8% in 1Q % in 2Q15 2Q15 Release (final): 21-Aug-15 CPI YoY: -0.4% in May -0.3% in Jun Jul Release: 25-Aug-15 NODX: -0.3% in May +4.7% in Jun Jul Release: 17-Aug-15 Industrial Production: -1.7% in May -4.4% in Jun Jun Release: 26-Aug-15 UOB FX Forecast: end 3Q15: 1.36 end 4Q15: 1.38 end 1Q16: 1.40 end 2Q16: 1.39 UOB 3M SIBOR Forecast: end 3Q15: 1.05% end 4Q15: 1.15% end 1Q16: 1.22% end 2Q16: 1.27% UOB 3M SOR Forecast: end 3Q15: 1.15% end 4Q15: 1.25% end 1Q16: 1.30% end 2Q16: 1.35% In line with expectation, USD failed to break clearly above the major resistance. The sharp drop from a high of to a low of and the subsequent quick rebound from the low has resulted in mixed outlook. Further choppy trading is likely for today albeit with a downside bias. From here, allow for a recovery to /50 but is expected to cap for a move to Neutral: Outlook for this pair is still viewed as neutral for now. USD edged above the strong resistance (high of ) before plunging to touch a low of last Friday. As pointed in recent updates, despite improving momentum, only a daily close above would indicate the start of a sustained up-move towards Otherwise, the outlook for this pair is still viewed as neutral. Strong support is at now ahead of the key level of

3 Monday, 03 August 2015 Page 3 EUR/SGD: EUR surged to a high of /93 last Friday before reversing quickly to close near While the choppy trading has resulted in a mixed outlook, we continue to view the current price action as a basing process that is expected to lead to a stronger EUR in the coming days. For now, allow for a dip to /15 but is expected to hold for a move to Bullish: Current short-term consolidation is expected to lead to an eventual break above /18. EUR surged last Friday but failed to break above the /18 peak seen on Monday (high of /93). Despite the sharp pull-back from the high, there is no indication that a top is in place. In other words, we continue to view the current movement as part of a short-term consolidation phase that is expected to lead to an eventual break above /18. Only a move below would indicate that a short-term top is in place. GBP/SGD: The choppy 2-way trade last Friday has resulted in a mixed outlook. The current consolidation phase appears incomplete and further sideway trading between / is expected from here. Bullish: Likely in a short-term consolidation phase which should lead to an eventual move to There is no change to the current bullish GBP view and we continue to target a move to the major resistance at The current pull-back from the high of /95 is likely a short-term consolidation phase that may last for few days. Only an unlikely break below would indicate that the bullish phase in GBP has ended. AUD/SGD: Against our expectation, AUD dipped below the strong support at last Friday (low of /50) before rallying strongly to test the major resistance at /75. However, the subsequent sharp drop from the high has resulted in a mixed outlook and this pair is expected to trade sideways for today. Expected range; / Bearish: Increasingly likely that a short-term low is close-by but confirmation is only upon a break above AUD surged higher last Friday but failed to break clearly above the stop-loss level at (high of /75). As pointed out in recent updates, waning downward momentum suggests that a short-term low is likely close-by. That said, until there is a clear break above , another attempt towards the cannot be ruled out just yet. JPY/SGD: The outlook for this pair is mixed from here. Expect further range trading, likely within last Friday's range of / [No change in view, see previous update below] Neutral: Only a clear break above would indicate the start of sustained rally in JPY. Despite improving short-term upward momentum, only a clear break above would indicate the start of a sustained rally in JPY. Otherwise, we continue to hold a neutral view for this pair and expect a / range for another week or so.

4 Monday, 03 August 2015 Page 4 USD/MYR: USD/MYR moved to as high as on Friday, the highest since the currency was pegged at 3.80 during the Asian Financial Crisis in Overall loans growth inched up to 9.1% y/y in June (8.9% in May) as the largest loan segment, residential mortgages, sustained its momentum of 12.8% y/y in May-Jun. Broad money growth increased to 6% driven mainly by the extension of credit to the private sector. Domestic fuel prices were cut by 4%-5% for the August month. Separately, Malaysia s newspaper reported over the weekend that PM Najib has a plan to reduce 1MDB s debt and urged the public to give him 6 months to implement it. The police arrested 30 individuals in connection with an illegal rally organized by several groups over the weekend. Despite the string of arrests at the #TangkapNajib rally in the city on Saturday, Bersih 2.0 said it will proceed with plans for its own mass protest this month end. Overnight Policy Rate: 3.25% Last Change: +0.25% in Jul 2014 Next BNM Meeting: 03-Sep-15 GDP YoY: +5.7% in 4Q % in 1Q15 2Q15 Release: 13-Aug-15 CPI YoY: +2.1% in May +2.5% in Jun Jul Release: 19-Aug-15 Trade Balance: +6.89b in Apr +5.5b in May Jun Release: 05-Aug-15 Export: -8.8% in Apr -6.7% in May Jun Release: 05-Aug-15 Import: -7.0% in Mar -7.2% in May Jun Release: 05-Aug-15 Industrial Production: +4.0% in Apr +4.5% in Apr Jun Release: 10-Aug-15 UOB FX Forecast: end 3Q15: 3.78 end 4Q15: 3.80 end 1Q16: 3.80 end 2Q16: 3.77 UOB Overnight Policy Rate Forecast: end 3Q15: 3.25% end 4Q15: 3.25% end 1Q16: 3.25% end 2Q16: 3.25% Bullish: No change in bullish view, a break of would shift the focus to next. USD touched a high of last Friday, just below our long-held target of We continue to hold a bullish view for this pair and a break above would shift the focus to next. The stop-loss is currently at , higher from previously. USD/THB: Similar to other Asian currencies, USD/THB traded to a new 6-year high of On focus this week would be BOT meeting on 5 th August which is expected to stay pat at 1.50% as recent indications from Finance Minister that further rate cuts would be of little help to the Thai economy. Today, July s CPI will be released. Thailand is expected to remain in deflation for the 7th straight month in July with CPI at -1.0% y/y. 1-Day Repo Rate: 1.50% Last Change: -0.25% in Apr 2015 Next BOT Meeting: 05-Aug-15 GDP YoY: +2.3% in 4Q % in 1Q15 2Q15 Release: 18-Aug-15 CPI YoY: -1.27% in May -1.07% in May May Release: 03-Aug-15 exp: -1.0% UOB FX Forecast: end 3Q15: 33.5 end 4Q15: 34.3 end 1Q16: 34.6 end 2Q16: 34.3 UOB 1-Day Repo Rate Forecast: end 3Q15: 1.50% end 4Q15: 1.50% end 1Q16: 1.75% end 2Q16: 2.00% Bullish: Revised target at met; some early signs USD is trying to find a short-term top. The revised target at was met when USD surged to a high of last Friday. While further USD strength is not ruled out in coming days, the sharp pull-back from the high is an early sign that this pair could be trying to find a shortterm top. However, only a clear break below (say a daily close below this level) would indicate that a top is in place. Otherwise, another attempt towards 35.27/30 cannot be ruled out even though a clear break above appears unlikely.

5 Monday, 03 August 2015 Page 5 USD/CNH: Over the weekend, the official Manufacturing PMI in China declined to 50.0 in July from 50.2 in June, further heightening growth concerns in the country. And just earlier, the Caixin manufacturing PMI final reading of 47.8 for July came in at the lowest since July 2013, worse than the preliminary reading of 48.2, which itself was below the 49.4 for June. This is the fifth month of sub-50 reading for the Caixin series, and the 7th sub-50 readings for the past 8 months. This should mean that the PBoC would still bias towards interest rate cuts and RRR cut, possibly one of each for now. Benchmark Deposit Rate: 2.00% Last Change: -0.25% in Jun 2015 Benchmark Lending Rate: 4.85% Last Change: -0.25% in Jun 2015 Reserve Requirement Ratio: 18.5% Last Change: -1.00% in Apr 2015 GDP YoY: +7.0% in 1Q % in 2Q15 3Q15 Release: 19-Oct-15 Caixin Manufacturing PMI: 49.4 in Jun 47.8 in Jul Aug Release: 24-Aug-15 NBS Manufacturing PMI: 50.2 in Jun 50.0 in Jul Jul Release: 01-Sep-15 PPI YoY: -4.6% in May -4.8% in Jun Jul Release: 09-Aug-15 CPI YoY: +1.2% in May +1.4% in Jun Jul Release: 09-Aug-15 Trade Balance: b in May b in Apr Jun Release: 08-Aug-15 Export: -2.5% in May +2.8% in May Jun Release: 08-Aug-15 Import: -17.6% in May -6.1% in May Jun Release: 08-Aug-15 UOB FX (USD/CNY) Forecast: end 3Q15: 6.23 end 4Q15: 6.20 end 1Q16: 6.19 end 2Q16: 6.17 UOB Benchmark Lending Rate Forecast: end 3Q15: 4.60% end 4Q15: 4.60% end 1Q16: 4.60% end 2Q16: 4.60% While USD tested the /45 resistance as expected, the subsequent sharp drop from the high was unanticipated. However, the undertone remains positive and as long as the key support at is intact, the current rebound is expected to retest the /45 resistance. Bullish: Only break below would indicate that our bullish expectation is wrong. While we continue to expect a higher USD from here, the prolonged consolidation over the last few trading days has resulted in a quick loss in upward momentum. However, we will change our expectation only if there is a break below Strong resistance is near but only a clear break above would indicate the start of a sustained rally.

6 Monday, 03 August 2015 Page 6 EUR/USD: EUR/USD ended the week pretty flat. The pair saw a high of before drifting back below the mark with Fed's Bullard still calling for a September tightening. Friday s violent topside price action is indicative of a market that has too many chips on the table, including concerns over Greece; whether the Fed would raise rates in September; and further signs of volatility in Chinese financial markets. With several significant Eurozone and US economic data releases over the coming days as well as central bank activity, it is very likely that volatility will ensue. Today, all eyes will be on the final readings of the sectoral PMI surveys for July, which could well reveal slight upward revisions to their flash estimates. Refinancing Rate: 0.05% Last Change: -0.10% in Sep 2014 Next ECB Meeting: 03-Sep-15 Deposit Rate: -0.2% Last Change: -0.10% in Sep 2014 Lending Rate: 0.3% Last Change: -0.10% in Sep 2014 GDP QoQ: +0.3% in 4Q % in 1Q15 2Q15 Release: 14-Aug-15 CPI YoY: +0.2% in Jun +0.2% in Jul Aug Release: 31-Aug-15 Unemployment: 11.1% in Jun 11.1% in Jul May Release: 01-Sep-15 UOB FX Forecast: end 3Q15: 1.09 end 4Q15: 1.10 end 1Q16: 1.12 end 2Q16: 1.12 UOB Refinancing Rate Forecast: end 3Q15: 0.05% end 4Q15: 0.05% end 1Q16: 0.05% end 2Q16: 0.05% EUR traded choppily last Friday by surging to a high of /15 before reversing quickly to close just below The outlook for today is mixed and further whippy trading is likely but likely within a smaller range of / Neutral: A move lower to test the major support at /20 cannot be ruled out. [See Chart of the Day on page 1]

7 Monday, 03 August 2015 Page 7 GBP/USD: GBP/USD continues to climb steadily, now above the figure. This week promises to be an interesting one for the UK with the decision of the BoE MPC meeting to be announced, the minutes of the meeting to be released, as well as the August BoE Inflation Report to be published on Thursday. BoE Governor Carney will also be presenting his accompanying press conference on the Inflation Report 45-minutes later. After the 9-0 vote last time, markets are expecting a 7-2 vote for no change in rates, with some risk of a 6-3. Whilst previous dissenting votes have not been a good indicator of a change in policy, and there have been plenty of false starts to the rate hiking cycle in the UK; this time it is a little different, with wage growth climbing for the first time and the unemployment rate down at 5.6%, the lowest since Even a dove like David Miles seems to be taking a hawkish tack in his latest speeches. But before all of that, the data release to watch on Monday is the Markit UK PMI manufacturing for July, expected to come in at Bank Rate: 0.50% Last Change: -0.50% in Mar 2009 Next BOE Meeting: 06-Aug-15 GDP QoQ: +0.4% in 1Q % in 2Q15 2Q15 Release (2 nd estimate): 28-Aug-15 CPI YoY: +0.1% in May 0.0% in Jun Jul Release: 18-Aug-15 Unemployment: 5.5% in Apr 5.6% in May Jun Release: 12-Aug-15 Services PMI: 56.5 in May 58.5 in Jun Jul Release: 05-Aug-15 exp: 58.0 UOB FX Forecast: end 3Q15: 1.60 end 4Q15: 1.62 end 1Q16: 1.64 end 2Q16: 1.67 UOB Bank Rate Forecast: end 3Q15: 0.5% end 4Q15: 0.5% end 1Q16: 0.5% end 2Q16: 0.75% GBP tested the support before rallying strongly to touch a high of Despite improving short-term upward momentum, the current movement is still viewed as part of a broad consolidation range. Expect sideway trading today, likely between and Neutral: Likely caught in a broad sideway trading range for now. While GBP rallied strongly last Friday, the failure to break above last Wednesday s high of was not surprising. Indicators are mostly mixed and from here, we continue to hold a neutral view and expect this pair to trade in broad / range for another week or so.

8 Monday, 03 August 2015 Page 8 AUD/USD: The Australian dollar spent last week treading water near the figure against its US counterpart as prices waited for new direction cues after dropping to a six-year low. The pair continues to flirt around similar levels this morning, muted reaction seen to the release of Caixin China manufacturing PMI final reading of 47.8 for July. All eyes will be on the RBA s decision on Tuesday. Although the RBA remains open to further easing, we believe it wants to stay on the sidelines for now to monitor the impact of the 50bps cuts already delivered this year. Cash Rate: 2.00% Last Change: -0.25% in May 2015 Next RBA Meeting: 04-Aug-15, 20 out 21 economists polled by Reuters expected no change in rates. GDP QoQ: +0.5% in 4Q % in 1Q15 2Q15 Release: 03-Sep-15 CPI YoY: +1.3% in 1Q % in 2Q15 2Q15 Release: 28-Oct-15 Unemployment: 5.9% in May 6.0% in Jun Jul Release: 07-Aug-15 exp: 6.0% Trade Balance: -4136m in Apr -2750m in May Jun Release: 04-Aug-15 exp: -3100m Capex: -2.2% 4Q14-4.4% 1Q15 2Q15 Release: 27-Aug-15 UOB FX Forecast: end 3Q15: 0.75 end 4Q15: 0.74 end 1Q16: 0.74 end 2Q16: 0.73 UOB Cash Rate Forecast: end 3Q15: 2.00% end 4Q15: 2.00% end 1Q16: 2.00% end 2Q16: 2.00% AUD exceeded the target indicated at /60 with a fresh 5-year low of before rebounding strongly. The outlook remains mixed but the strong recovery last Friday suggests limited downside risk for today. From here, allow for a dip to but /40 is expected to hold for a retest of the /70 high seen last Friday. Bearish: Increasingly likely that the current bearish AUD phase is close to an end. AUD dipped to a low of last Friday, holding just above the revised target at The subsequent rally touched a high of , just shy of the stop-loss level at While we are not ruling out another leg lower to , the current price action appears to be the early stages of a bottoming process. In other words, it is getting increasingly likely that the current bearish AUD phase that started late last month is close to an end. NZD/USD: NZD/USD remains soft, trading below the levels as the RBNZ is seen keeping up its rate-cut rhetoric. Today looks quiet as the New Zealand economic docket is virtually empty, kicking off only on Tuesday with the release of QV house prices and ANZ commodity prices for July. Official Cash Rate: 3.00% Last Change: -0.25% in Jul 2015 Next RBNZ Meeting: 10-Sep-15 GDP QoQ: +0.8% in 4Q % in 1Q15 2Q15 Release: 17-Sep-15 CPI QoQ: -0.3% in 1Q % in 2Q15 3Q15 Release: 23-Oct-15 Unemployment: 5.8% in 4Q14 5.8% in 1Q15 2Q15 Release: 05-Aug-15 exp: 5.9% UOB FX Forecast: end 3Q15: 0.66 end 4Q15: 0.64 end 1Q16: 0.63 end 2Q16: 0.62 UOB Official Cash Rate Forecast: end 3Q15: 2.75% end 4Q15: 2.50% end 1Q16: 2.50% end 2Q16: 2.50% [No change in view, see previous update below] Neutral: Despite pick-up in short-term downward momentum, the current outlook for NZD is still viewed as neutral. While the sharp drop from the high of is picking up momentum quickly, we still view the current movement as part of a broad sideway trading range. Even a move below the low end of the expected / range is likely limited to a retest of the low seen about 2 weeks ago.

9 Monday, 03 August 2015 Page 9 USD/JPY: It was a volatile week for the JPY. First, a renewed sell-off in Chinese equity markets sent the safe-haven currency higher. Yet a significant reversal in China and broader financial markets sparked a swift reversal and ultimately pushed the currency to fresh monthly lows. The USD/JPY pair saw lows of lows last Friday. And this morning, continues to struggle below the figure. We look to the coming week s BoJ monetary policy meeting as well as potentially critical US data to drive short-term direction in the USD/JPY. Earlier this morning, the final Nikkei Japan PMI manufacturing reading came in at 51.2, slightly lower than the previous reading of July vehicle sales data for July will be released later today. Overnight Call Rate: % Last Change: -0.20% in Dec 2008 Next BOJ Meeting: 07-Aug-15 GDP QoQ Annualized: +1.1% in 4Q % in 1Q15 2Q15 Release: 17-Aug-15 CPI Core YoY: +0.1% in May +0.1% in Jun Jun Release: 29-Aug-15 Industrial Production MoM: -2.1% in May +0.8% in Jun Jul Release: 29-Aug-15 Household Spending: +4.8% in May -2.0% in Jun Jul Release: 29-Aug-15 UOB FX forecast: end 3Q15: 126 end 4Q15: 127 end 1Q16: 129 end 2Q16: 130 UOB Overnight Call Rate Forecast: end 3Q15: % end 4Q15: % end 1Q16: % end 2Q16: % The expectation for a short-term top last Friday was correct as USD plunged to a low of Despite the sharp drop, the current price action is likely part of a broad sideway range instead of the start of a sustained down-move. Expect further whippy trading today, likely between and Neutral: Back into a neutral sideway trading range between and The choppy trading last Friday reinforces our current neutral view for this pair. Most indicators are mixed to neutral suggesting further range trading in the coming week; likely between and

10 Monday, 03 August 2015 Page 10 US Data Releases Fed Funds Rate: % Last Change: -0.75% in Dec 08 Next FOMC Meeting: 17-Sep-15 GDP QoQ: +0.6% in 1Q % in 2Q15 2Q15 Release (2nd estimate): 27-Aug-15 PCE Price Index YoY: +0.2% in Apr +0.2% in May Jun Release: 03-Aug-15 exp: +0.2% Core PCE Price Index YoY: +1.3% in Apr +1.2% in May Jun Release: 03-Aug-15 exp: +1.2% Unemployment: +5.5% in May +5.3% in Jun Jul Release: 07-Aug-15 exp: +5.3% Nonfarm payroll: +254k in May +223k in Jun Jul Release: 07-Aug-15 exp: +222k Retail Sales: +1.0% in Jun -0.3% in Jul Aug Release: 13-Aug-15 Retail Sales ex autos: +0.8% in Jun -0.1% in Jul Aug Release: 13-Aug-15 Durable Goods: -2.1% in May +3.4% in Jun Jul Release: 26-Aug-15 Durable Goods ex autos: -0.1% in May +0.8% in Jun Jul Release: 26-Aug-15 Housing Starts: +1069k in May +1174k in Jun Jul Release: 18-Aug-15 Case Shiller 20-City Index: +5.0% in Apr +4.9% in May Jun Release: 25-Aug-15 UoM Consumer Confidence: 96.1 in Jun 93.3 in Jul Aug Release: 14-Aug-15 UOB Fed Funds Rate Forecast: end 3Q15: 0.50% end 4Q15: 0.75% end 1Q16: 1.00% end 2Q16: 1.25% Last updated: 19 Jun 15 FX Outlook 3Q15 4Q15 1Q16 2Q16 EUR/USD GBP/USD AUD/USD USD/JPY USD/SGD USD/MYR USD/THB USD/CNY USD/IDR USD/PHP USD/INR USD/TWD USD/HKD USD/KRW

11 Monday, 03 August 2015 Page Aug-15 FX Pairs Spot Outlook USD/SGD Neutral Summary of Views Since Rate 29 Jul Target Trailing-stop Support Resistance S1: S2: R1: R2: EUR/SGD Bullish 24 Jul S1: S2: R1: R2: GBP/SGD Bullish 15 Jul S1: S2: R1: R2: AUD/SGD Bearish 27 Jul S1: S2: R1: R2: JPY/SGD Neutral 13 Jul S1: S2: R1: R2: USD/MYR Bullish 06 Jul S1: S2: R1: R2: USD/THB Bullish 24 Jun S1: S2: R1: R2: USD/CNH Bullish 27 Jul S1: S2: R1: R2: EUR/USD Neutral 31 Jul S1: S2: R1: R2: GBP/USD Neutral 13 Jul S1: S2: R1: R2: AUD/USD Bearish 29 Jun S1: S2: R1: R2: NZD/USD Neutral 22 Jul S1: S2: R1: R2: USD/JPY Neutral 30 Jul S1: S2: R1: R2: FX Pairs Ranges for 31-Jul-15 * Percentage difference between the closing price and the last price 1-period ago. ** Percentage difference between the closing price and the last price on 31-Dec-14. Performance* Open High Low Close 1-day 1-week 1-month YTD** USD/SGD % +0.05% +1.46% +3.49% EUR/SGD % +0.06% +0.81% -6.00% GBP/SGD % +0.72% +1.46% +3.81% AUD/SGD % +0.32% -3.11% -7.49% JPY/SGD % -0.06% +0.79% -0.06% USD/MYR % +0.18% +1.91% +9.17% USD/THB % +0.31% +3.47% +6.44% USD/CNH % -0.10% +0.29% +0.07% EUR/USD % +0.04% -0.58% -9.17% GBP/USD % +0.71% +0.05% +0.33% AUD/USD % +0.23% -4.48% -10.5% USD/JPY % +0.10% +0.62% +3.54% Disclaimer: This analysis is based on information available to the public. Although the information contained herein is believed to be reliable, UOB Group makes no representation as to the accuracy or completeness. Also, opinions and predictions contained herein reflect our opinion as of date of the analysis and are subject to change without notice. UOB Group may have positions in, and may effect transactions in, currencies and financial products mentioned herein. Prior to entering into any proposed transaction, without reliance upon UOB Group or its affiliates, the reader should determine, the economic risks and merits, as well as the legal, tax and accounting characterizations and consequences, of the transaction and that the reader is able to assume these risks. This document and its contents are proprietary information and products of UOB Group and may not be reproduced or otherwise.