Singapore Dollar: Range consolidation after sharp decline against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD surged to 1.2754 after previously expecting a tighter range, with the Singapore Dollar (SGD) Nominal Effective Exchange Rate (S$NEER) still above its mid-point.
The Singapore Dollar (SGD) has been consolidating its range after experiencing a significant drop against the US Dollar. United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann observed that the USD/SGD surged to 1.2754, exceeding their initial expectation of a tighter range. Currently, the SGD Nominal Effective Exchange Rate (S$NEER) remains above its midpoint, positioning the pair as neutral within the 1.2705-1.2780 band over the next few days.
Intra-day gains are likely to be capped between 1.2725 and 1.2765, with major resistance located at 1.2780. Last Friday, UOB had predicted that USD could trade between 1.2695 and 1.2725. However, during the New York session, USD unexpectedly jumped to 1.2754. While this rapid rise may extend, overbought conditions suggest that any upward movement could be contained within the 1.2725/1.2765 range. Should USD break above 1.2765, the major resistance at 1.2780 is unlikely to be reached.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
