Singapore Dollar: Range-bound consolidation persists against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes that USD/SGD has lost upside momentum after briefly breaching support at 1.2925, shifting the short-term bias to neutral. In the near term, the pair is expected to hold within 1.2920–1.2950, while over the next 1–3 weeks UOB sees a broader 1.2870–1.2970 range. Longer term, strong weekly momentum still favors a push above 1.3000 toward 1.3095.

Dollar-Singapore Dollar holds neutral bias

"24-HOUR VIEW: Yesterday, we indicated that USD “is likely to trade between 1.2930 and 1.2960.” However, USD edged to a low of 1.2922. The decline did not result in any clear increase in downward momentum, and instead of continuing to decline today, USD is more likely to trade in a range between 1.2920 and 1.2950."

"1-3 WEEKS VIEW: After holding a positive USD view for more than a week, in our most recent narrative from last Friday (26 Jun, spot at 1.2965), we highlighted that USD “needs to build on its gain soon, or a breach of 1.2925 (‘strong support’ level) would indicate that the 1.2991 high seen two days ago is the extent of the current USD strength.” Yesterday, USD edged below 1.2925, printing a low of 1.2922. Upward momentum has faded, and we are revising our view to neutral. For the time being, USD is likely to trade in a range between 1.2870 and 1.2970."

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