Singapore Dollar: Further losses against US Dollar toward 1.2960 – UOB

FXStreet Insights Team FXStreet

UOB’s Quek Ser Leang and Lee Sue Ann highlight that USD/SGD surged past 1.29 after a blowout US nonfarm payrolls report, with the S$NEER still trading well above its mid-point. In the short term, they see scope for a test of the year-to-date high near 1.2930, while on a 1–3 week horizon, the focus shifts to resistance at 1.2960, provided support at 1.2830/1.2855 holds.

Upside bias with key resistance levels

"24-HOUR VIEW: After our expectation for USD to test 1.2855 did not materialise last Thursday, we highlighted on Friday that “there remains a chance for USD to test 1.2855.” We also highlighted that “a breach of 1.2855 is not ruled out, but a continued rise above this level appears unlikely,” and “the next major resistance at 1.2890 is also unlikely to come into view.” The subsequent price movements did not unfold as expected. While USD subsequently rose slightly above 1.2855, it retreated to a low of 1.2828, and then in a sudden move during the early NY session, jumped to a high of 1.2913. Strong momentum suggests USD could test the year-to-date high, near 1.2930. The next resistance at 1.2960 is likely out of reach for now. To keep the momentum going, USD must hold above 1.2870."

"1-3 WEEKS VIEW: Last Tuesday (02 Jun, spot at 1.2785), we highlighted that “there has been a slight increase in upward momentum, but for a continued rise, USD must first close above 1.2810.” After USD rose and closed at 1.2841, in our most recent narrative from last Thursday (04 Jun, spot at 1.2835), we highlighted that “the price action suggests USD could rise further to the significant resistance at 1.2855.” We added, “looking ahead, should USD break above 1.2855, the focus will shift to another significant resistance at 1.2890.” We did not expect USD to lift off on Friday and surge above 1.2890, as it printed a high of 1.2913. The sharp increase in upward momentum is likely to lead to further USD strength. The level to watch is 1.2960. We will maintain our positive USD view as long as it holds above 1.2830 (‘strong support’ level was at 1.2800 last Friday). In the near-term, 1.2855 is already a firm support level."

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

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.