Singapore Dollar shows slight upward bias against US Dollar - UOB

A narrow trading range left USD/SGD little changed on Thursday, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, as safe-haven demand and gains in Oil underpinned the US Dollar against Asian currencies. In the short term, they envisage a slight decline within 1.2755–1.2780. Their 1–3 week view remains bearish, targeting 1.2750 provided 1.2795 continues to cap the pair.

Resistance keeps modest downside in prospect

"24-HOUR VIEW: After USD traded within a tight 1.2771/1.2783 range two days ago, we indicated yesterday that “the price action provides no fresh clues.” We also indicated that USD “could trade between 1.2765 and 1.2785.” USD then traded within a slightly wider range of 1.2762/1.2785, closing unchanged at 1.2774. There has been a slight increase in downward momentum, but it is insufficient to indicate a sustained decline. Today, USD could edge lower, but any decline should stay within a 1.2755/1.2780 range."

"1-3 WEEKS VIEW: We turned negative on USD early this week. In our most recent narrative from Wednesday (21 Oct, spot at 1.2780), we highlighted that “downward momentum has increased further, and USD could decline to 1.2750.” Although USD has traded in a quiet manner since then, we will continue to hold the same view as long as USD holds below 1.2795 (‘strong resistance’ level previously at 1.2805)."

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