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."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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