Singapore Dollar: FOMC and yields steer SGD against US Dollar – OCBC
OCBC’s Christopher Wong notes USD/SGD drifted lower with the broader USD and US Treasury yields before paring losses, with external drivers back in focus after MAS’s October decision.
Singapore Dollar (SGD) has been weakened against the US Dollar (USD) due to interest rate movements and external factors, according to OCBC's Christopher Wong. The USD/SGD pair experienced a downward trend throughout last week, mirroring the overall decline in USD and US Treasury yields, before partially recouping some losses on Friday.
However, with the Monetary Authority of Singapore's (MAS) October policy decision concluded, external developments have emerged as the primary driver of USD/SGD movements. OCBC maintains a constructive medium-term outlook on the SGD, acknowledging that near-term direction is highly dependent on USD fluctuations, US Treasury yields, and the renminbi.
The Singapore Non-Exporter Exchange Rate (S$NEER) model suggests that SGD may face limited upside potential versus peers unless the USD experiences a significant depreciation. Currently, the SGD exhibits a mild bearish momentum, with the Relative Strength Index (RSI) showing a moderate decline. Short-term trades are considered likely within the near term.
Technical support can be found at 1.2750 (50-day moving average) and 1.2740 (61.8% Fibonacci retracement of the 2026 low to high range), while resistance levels are located at 1.2790 (21-day moving average, 50% Fibonacci retracement) and 1.2820 (100-day moving average).
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