Singapore Dollar: Fading momentum keeps trading rangebound against US Dollar - UOB

Range-bound trading remains the outlook for USD/SGD, according to UOB strategists Quek Ser Leang and Lee Sue Ann. The pair is broadly steady, with spot near 1.2815, while the S$NEER stands 1.52% above its estimated mid-point. The strategists anticipate intraday consolidation within 1.2800–1.2830. For the next 1–3 weeks, they see a broader trading band of 1.2775–1.2835, unless a close above 1.2835 paves the way for 1.2855.

Can the Dollar-Singapore pair break out of its ranges?

"24-HOUR VIEW: When USD was at 1.2815 yesterday, we indicated that “the slightly firmer underlying tone suggests USD is likely to trade in a higher range between 1.2805 and 1.2825.” The subsequent price movements did not unfold as expected. During the NY session, USD spiked to a high of 1.2837 and then quickly retreated to end the day marginally lower by 0.01% at 1.2813. There is no clear increase in upward momentum with the brief rise. Today, we expect USD to trade in a range, most likely between 1.2800 and 1.2830"

"1-3 WEEKS VIEW: In our most recent narrative from Tuesday (27 Oct, spot at 1.2810), we highlighted that “while the advance on Monday has resulted in an increase in upward momentum, it is not sufficient to indicate a sustained rise.” We also highlighted that “for the time being, USD is likely to trade between 1.2775 and 1.2835.” Yesterday, USD briefly rose to a high of 1.2837 before pulling back. Given that there is no sustained break above 1.2835, we continue to expect USD to trade in a range between 1.2775 and 1.2835. Looking ahead, should USD close above 1.2835, it could lead to a rise to 1.2855."

(An editor reviewed this article, which was produced with assistance from an Artificial Intelligence tool. Learn more.)