Singapore Dollar: UOB Sees Range-Bound Trading Against US Dollar

The SGD NEER is expected to stay 1.30%–1.80% above its policy midpoint. That is the forecast from United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann, implying USD/SGD should remain rangebound around current levels. The pair traded in a narrow range on Monday, they note, as a slightly firmer SGD NEER supported the Singapore Dollar. Across Asian FX, portfolio outflows and cautious sentiment ahead of the US midterm elections continue to exert pressure.

USD/SGD expected to remain rangebound

"24-HOUR VIEW: Yesterday, we expected USD “to trade in a range between 1.2775 and 1.2800.” We were not wrong, as USD traded within a 1.2775/1.2797 range before settling at 1.2794 (+0.10%). We continue to expect range-trading today, but the slightly firmer underlying tone suggests USD is likely to trade in a higher range of 1.2785/1.2810."

"1-3 WEEKS VIEW: In our most recent narrative from one week ago (27 Oct, spot at 1.2810), we highlighted that USD “is likely to trade between 1.2775 and 1.2835.” Since then, USD has traded within a 1.2771/1.2837 range. With no clear increase in either downward or upward momentum, we continue to expect USD to trade between 1.2775 and 1.2835."

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