Singapore Dollar: Pressured against US Dollar as MAS tightening eyed – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong note that USD/SGD is trading with a bid tone on a firmer US Dollar (USD) backdrop, with resistance around 1.2940 and support near 1.2840/50. While Singapore Dollar (SGD) is seen as relatively resilient if Oil stays contained, higher US yields and fragile risk sentiment are expected to keep USD/SGD supported ahead of Singapore Consumer Price Index (CPI) and the July Monetary Authority of Singapore (MAS) meeting.

Resilient SGD but firm pair

"USD/SGD continued to trade with a bid tone, reflecting the firmer USD backdrop. Pair last seen at 1.2917. Daily momentum is mild bullish while RSI rose. Consolidation near the upper range likely to persist for now."

"Resistance at 1.2940 (recent high). Support at 1.2840/50 levels (200 DMA, 23.6% fibo), 1.28 (38.2% fibo retracement of 2026 low to high)."

"This week’s focus is on CPI data (Tue) as markets focus shifts to the next MAS policy MPC in July."

"A reacceleration in core CPI should reinforce market expectations for another tightening. More broadly, SGD should remain one of the more resilient Asian currencies on relative terms, especially if oil stays contained."

"But the path is likely to be choppy. A firmer USD, higher US Treasury yields and fragile risk sentiment can still keep USD/SGD supported in the near term."

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