Singapore Dollar: Range bias holds above 1.2890 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes that USD/SGD’s mild downward pressure has eased, with the pair expected to stay range-bound. Intraday, the Dollar is seen trading between 1.2920 and 1.2960, while over the next 1–3 weeks UOB projects a broader 1.2890–1.2990 band. On a 1–3 month horizon, a break above 1.3000 could open a move toward 1.3095.

Dollar-Singapore Dollar seen range-bound

"24-HOUR VIEW: When USD was at 1.2930 in the early Asian session yesterday, we were of the view that it “is likely to edge higher.” However, we pointed out that “it is unlikely to break above 1.2955.” Our view of a higher USD was not wrong, even though USD rose to a high of 1.2956 before easing to close at 1.2938 (+0.07%). The slight increase in upward momentum is insufficient to indicate a continued rise in USD. Today, USD is more likely to trade in a higher range of 1.2920/1.2960."

"1-3 WEEKS VIEW: After expecting USD to trade in a 1.2890/1.2990 range for several days, we highlighted on Tuesday (07 Jul, spot at 1.2915) that “downward momentum has ticked up, and the risk of USD breaking below 1.2890 is increasing.” We added, “a breach of 1.2955 (‘strong resistance’ level) would indicate that USD is likely to continue to trade in a range.” Yesterday, USD rose to a high of 1.2956. Although our ‘strong resistance’ level was only slightly breached, the mild downward pressure has eased. From here, we expect USD to trade in a range, most likely between 1.2890 and 1.2990."