Singapore Dollar: Consolidation near 1.28 with upside risks against US Dollar – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note USD/SGD is consolidating around 1.28 as softer United States (US) Producer Price Index (PPI) trims Federal Reserve (Fed) hike expectations but fails to trigger fresh US Dollar (USD) selling.
Singapore’s currency, the Singapore Dollar (SGD), is currently consolidating near the 1.28 mark with potential upside risks against the US Dollar (USD), according to OCBC analysts Sim Moh Siong and Christopher Wong. The pair has been holding steady around 1.28 levels overnight, with softer-than-expected US Producer Price Index (PPI) data dampening expectations of a Federal Reserve (Fed) rate hike.
While there are still possible downside risks, the pair’s inability to break below the current level indicates that the next downward move may not be as straightforward. Geopolitical tensions, particularly the recent drone attacks on Saudi Aramco’s Jazan refinery claimed by the Houthis and the US’s potential indefinite naval blockade of Iranian ports, may be tempering the enthusiasm to push the USD lower.
The analysts note that the pair may face some resistance at the 1.2830/40 levels, which include significant moving averages and Fibonacci retracement levels. They also mention a support level at 1.2770, as well as 1.2740, based on the recent low and 61.8% Fibonacci retracement of the 2026 low to high range.
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