UOB’s Quek Ser Leang and Lee Sue Ann note USD/SGD held steady around 1.2800 after Wednesday’s surge, with the Singapore Dollar (SGD) supported by expectations of further MAS tightening. Their Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) model sits 1.76% above the mid-point, implying a USD/SGD range of 1.2764–1.2828 today, while renewed Dollar momentum keeps focus on resistance at 1.2835.
Dollar holds firm against Singapore Dollar
“24-HOUR VIEW: Following the strong surge on Wednesday, USD consolidated between 1.2788 and 1.2811 yesterday, closing unchanged at 1.2800. USD is likely to continue to consolidate today, probably between 1.2780 and 1.2815.”
“1-3 WEEKS VIEW: We turned positive on USD two weeks ago. In our most recent narrative from two days ago (23 Sep, spot at 1.2750), we noted that “upward momentum is starting to ease, and a break below 1.2725 (‘strong support’ level) would indicate that the advance in USD has stalled.” USD subsequently surged to a high of 1.2813. The renewed upward momentum suggests USD could test the significant resistance level at 1.2835 (we highlighted this level on 17 Sep, as well as in the 1-3 months view below). On the downside, the ‘strong support’ level is now at 1.2770.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
