Singapore Dollar: FOMC and yields steer SGD against US Dollar – OCBC

OCBC’s Christopher Wong notes USD/SGD drifted lower with the broader USD and US Treasury yields before paring losses, with external drivers back in focus after MAS’s October decision. The bank keeps a constructive medium-term view on SGD but sees limited scope for outperformance while S$NEER sits in the upper band, watching FOMC and key support and resistance levels.

SGD tracks USD and US yields

"USD/SGD drifted lower for much of last week, tracking the broader decline in USD and US Treasury yields, before paring some of its losses on Friday. With MAS’s October policy decision behind us, external developments have returned as the main driver of USD/SGD."

"We retain a constructive medium-term SGD outlook, although near-term direction remains sensitive to USD movements, US Treasury yields and RMB."

"The S$NEER’s model-implied position in the upper half of the policy band may also limit scope for further SGD outperformance vs peers unless USD falls in a big way."

"Daily momentum is mild bearish while decline in RSI moderated. 2-way trades likely for now."

"Support at 1.2750 (50 DMA), 1.2740 (61.8% fibo retracement of 2026 low to high). Resistance at 1.2790 (21 DMA, 50% fibo), 1.2820 (100 DMA)."

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