Singapore Dollar: SGD takes its cue from FOMC and yields against US Dollar – OCBC

With S$NEER in the upper part of its band, OCBC sees little room for SGD to outperform, although the bank remains constructive on the currency over the medium term. OCBC’s Christopher Wong notes that USD/SGD initially eased alongside the broader USD and US Treasury yields before recovering some ground. Following MAS’s October decision, attention has shifted back to external factors, with FOMC and key support and resistance levels in focus.

USD and US yields steer SGD

"USD/SGD drifted lower for much of last week, tracking the broader decline in USD and US Treasury yields, before paring some of its losses on Friday. With MAS’s October policy decision behind us, external developments have returned as the main driver of USD/SGD."

"We retain a constructive medium-term SGD outlook, although near-term direction remains sensitive to USD movements, US Treasury yields and RMB."

"The S$NEER’s model-implied position in the upper half of the policy band may also limit scope for further SGD outperformance vs peers unless USD falls in a big way."

"Daily momentum is mild bearish while decline in RSI moderated. 2-way trades likely for now."

"Support at 1.2750 (50 DMA), 1.2740 (61.8% fibo retracement of 2026 low to high). Resistance at 1.2790 (21 DMA, 50% fibo), 1.2820 (100 DMA)."

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