Singapore Dollar: Upward bias remains intact within range against US Dollar – UOB

UOB’s 1–3 week outlook still favours mild Dollar weakness. Strategists Quek Ser Leang and Lee Sue Ann see USD/SGD edging towards key support levels unless resistance gives way. The pair slipped overnight amid resilient Asian currencies, while the SGD NEER remained well above its mid-point. In the short term, they expect a narrow intraday trading range.

Nearby Support Limits Dollar Weakness

"24-HOUR VIEW: We expected USD to “consolidate between 1.2785 and 1.2815” yesterday. We were incorrect as USD declined to a low of 1.2766 before recovering to close 0.21% lower at 1.2777. Despite declining, USD has not gained much momentum, and it is unlikely to weaken much further. Today, USD is more likely to trade in a range between 1.2765 and 1.2795."

"1-3 WEEKS VIEW: We turned slightly negative on USD on Monday (19 Oct, spot at 1.2800), indicating that “there has been a tentative buildup in downward momentum.” We highlighted that USD “may edge lower, but based on the prevailing momentum, any decline is unlikely to break the support at 1.2765.” Yesterday, USD fell to a low of 1.2766. Downward momentum has increased further, and USD could decline to 1.2750. Overall, only a breach of 1.2805 (‘strong resistance’ level previously at 1.2830) would indicate that the buildup in downward momentum has faded."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)