Singapore Dollar: Holds range against US Dollar as momentum fades - UOB

UOB strategists Quek Ser Leang and Lee Sue Ann note that USD/SGD remains broadly stable, with spot around 1.2815 and the S$NEER holding 1.52% above its estimated mid-point. Their short-term view is for intraday consolidation between 1.2800 and 1.2830, while over the next 1–3 weeks they expect a wider 1.2775–1.2835 range unless a close above 1.2835 opens 1.2855.

Dollar-Singapore pair stuck in ranges

"24-HOUR VIEW: When USD was at 1.2815 yesterday, we indicated that “the slightly firmer underlying tone suggests USD is likely to trade in a higher range between 1.2805 and 1.2825.” The subsequent price movements did not unfold as expected. During the NY session, USD spiked to a high of 1.2837 and then quickly retreated to end the day marginally lower by 0.01% at 1.2813. There is no clear increase in upward momentum with the brief rise. Today, we expect USD to trade in a range, most likely between 1.2800 and 1.2830"

"1-3 WEEKS VIEW: In our most recent narrative from Tuesday (27 Oct, spot at 1.2810), we highlighted that “while the advance on Monday has resulted in an increase in upward momentum, it is not sufficient to indicate a sustained rise.” We also highlighted that “for the time being, USD is likely to trade between 1.2775 and 1.2835.” Yesterday, USD briefly rose to a high of 1.2837 before pulling back. Given that there is no sustained break above 1.2835, we continue to expect USD to trade in a range between 1.2775 and 1.2835. Looking ahead, should USD close above 1.2835, it could lead to a rise to 1.2855."

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