Singapore Dollar expected to remain range-bound against US Dollar – UOB

With USD/SGD near 1.2785 and downward momentum having stalled, United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann forecast range-bound trading. Their 24-hour outlook points to the pair remaining between key levels. For the next 1–3 weeks, their expected range remains 1.2775 to 1.2835, although a close below 1.2775 would open the way towards 1.2755. A sustained break of either 1.2855 or 1.2755 is needed for a clearer trend to emerge.

Dollar-Singapore Dollar remains range-bound

"24-HOUR VIEW: When USD was at 1.2795 in the early Asian session last Friday, we indicated that USD “is likely to edge lower.” However, we stated that “given the mild downward pressure, any decline is unlikely to break below the major support at 1.2775.” USD declined more than expected to 1.2771 before settling 0.15% lower at 1.2781. There has been no further increase in downward momentum, and instead of declining further today, USD is more likely to trade in a range between 1.2775 and 1.2800."

"1-3 WEEKS VIEW: Our most recent narrative was from last Tuesday (27 Oct, spot at 1.2810), when we highlighted that USD “is likely to trade between 1.2775 and 1.2835.” On Friday, USD broke below 1.2775 with a low of 1.2771 before recovering. Despite breaching the support level, there has been no clear increase in downward momentum. For the time being, we continue to hold the view that USD is likely to trade in a range between 1.2775 and 1.2835. Looking ahead, should USD close below 1.2775, it would then likely decline toward the next support level at 1.2755."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)