Quek Ser Liang of United Overseas Bank (UOB) says USD/SGD’s mild downward pressure has subsided, with the pair expected to remain range-bound. Intraday, the dollar is seen trading between 1.2920 and 1.2960, while UOB forecasts a broader 1.2890-1.2990 band over the next 1-3 weeks. On a 1-3 month horizon, a break above 1.3000 could lead to a move towards 1.3095.
Dollar-Singapore dollar seen in tight range
“24-hour view: When the USD was at 1.2930 in the early Asian session yesterday, our view was that it was “likely to rise further.” However, we added that it was “unlikely to break above 1.2955.” Our view of a higher USD was not wrong, even though the USD rose to a high of 1.2956 before closing at 1.2938 (+0.07%). A slight increase in upward momentum in the USD “Insufficient to indicate continued upside. Today, USD is more likely to trade in the higher range of 1.2920/1.2960.”
“1-3 week view: After expecting the USD to trade in the 1.2890/1.2990 range for several days, we highlighted on Tuesday (July 07, spot at 1.2915) that “downside momentum has increased, and the risk of the USD breaking below 1.2890 is increasing.” We said, “A breach of 1.2955 (‘strong resistance’ level) would signal that the USD “Yesterday, the USD reached a high of 1.2956. Although our ‘strong resistance’ level was only slightly broken, the mild downward pressure has subsided. From here, we expect the USD to trade in a range, possibly between 1.2890 and 1.2990.”
(This article was created with the help of an artificial intelligence tool and reviewed by an editor. know more.)
