Singapore Dollar: Range trade persists against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD has seen downward momentum slow after last week’s sharp drop, with the pair expected to stay between 1.2900 and 1.2935 intraday. On a 1–3 week horizon, UOB maintains a neutral stance, projecting consolidation within 1.2890–1.2990. Longer term, strong weekly momentum still favours further USD/SGD strength toward 1.3000 and potentially 1.3095.

Dollar-Singapore pair holds in range

"24-HOUR VIEW: After USD fell sharply to a low of 1.2901 last Thursday, we highlighted the following on Friday: “While the sharp drop appears to be overdone, the decline has not quite stabilised. Today, USD could dip below the 1.2900 level and potentially test the major support at 1.2890. A clear break below 1.2890 is unlikely. Resistance is at 1.2935; a breach of 1.2950 would suggest that the decline has stabilised.” USD subsequently dropped to a low of 1.2896 before recovering to close largely unchanged at 1.2919 (+0.02%). There has been a slowdown in downward momentum, and instead of declining today, USD is more likely to trade in a range, probably between 1.2900 and 1.2935."

"1-3 WEEKS VIEW: We turned neutral on USD early last week. In our most recent narrative from last Thursday (02 Jul, spot at 1.2960), we stated that “we continue to expect range-trading, but we are revising our expected range higher to 1.2890/1.2990.” USD dropped toward the lower end of our expected range last Friday with a low of 1.2896. The slight increase in downward momentum is not sufficient to indicate a continued decline. For the time being, we continue to expect USD to trade between 1.2890 and 1.2990."

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