Singapore Dollar: Range bias holds near recent lows against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD closed at 1.2960 after a volatile session, with intraday swings between 1.2938 and 1.2975. For the coming day, he expects the pair to stay confined within a narrow 1.2935–1.2975 band. Over the next 1–3 weeks, the expected trading range has been revised higher to 1.2890–1.2990, while the 1–3 month view still favors further Dollar strength above 1.3000.

Dollar seen consolidating near 1.30

"24-HOUR VIEW: Following Tuesday’s price action, we indicated yesterday that “momentum indicators are mostly flat,” and we held the view that USD “is likely to trade between 1.2925 and 1.2955.” The subsequent price movements did not turn out as expected. USD popped to a high of 1.2975, pulled back sharply to 1.2938 before recovering to close at 1.2960 (+0.23%). The brief advance did not lead to any clear increase in upward momentum, and we continue to expect USD to trade in a range today, most likely between 1.2935 and 1.2975."

"1-3 WEEKS VIEW: On Tuesday (30 Jun, spot at 1.2930), we indicated that USD “is neutral now.” We also indicated that “for the time being, USD is likely to trade in a range between 1.2870 and 1.2970.” Yesterday, USD broke above 1.2970 and reached a high of 1.2975 before pulling back. The slight uptick in momentum is not sufficient to indicate a sustained advance. We continue to expect range-trading, but we are revising our expected range higher to 1.2890/1.2990."

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