Singapore Dollar: Downside risks remain against US Dollar – OCBC
OCBC’s Sim Moh Siong and Christopher Wong note that USD/SGD is rebounding alongside a stronger US Dollar (USD), supported by higher US Treasury yields and firmer Fed hike expectations.
OCBC analysts Sim Moh Siong and Christopher Wong highlight that the USD/SGD exchange rate is currently on the rise, coinciding with the strengthening US Dollar. This trend is fueled by higher US Treasury yields and expectations of the Federal Reserve raising interest rates. The currency pair's sensitivity to US Dollar movements suggests that further gains in the DXY could propel USD/SGD higher in the short term.
However, they believe the Singapore Dollar's inherent strength and the S$NEER policy framework will help mitigate potential swings. While the daily chart shows mild bearish momentum, the relative strength index (RSI) is currently rising, indicating potential upside risks. Key resistance levels are at 1.2740, marked by the 61.8% Fibonacci retracement of the 2026 low to high range, and 1.2760/90, the 50% Fibonacci level and the 21-day moving average. Conversely, support is found at 1.2680 (the 76.4% Fibonacci level) and 1.2650.
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