Singapore Dollar: CPI and MAS in focus – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong expect USD/SGD to remain largely driven by broader US Dollar (USD) direction and risk sentiment, after recent rangebound trading around the low‑1.29s. With Singapore Consumer Price Index (CPI) due on 23 July and the Monetary Authority of Singapore (MAS) review likely the following week, their house view is for MAS to stay on hold while monitoring inflation against still‑elevated energy prices.

Range trade ahead of MAS decision

"USD/SGD remained largely rangebound around the low-1.29s, with the USD pullback post-US CPI failing to extend as geopolitical re-escalation and AI-selloff crimped sentiment."

"This week, focus shifts to Singapore CPI (23 Jul) ahead of the MAS policy review, likely in the week of 27–31 Jul."

"Our house view looks for MAS to stay on hold after Apr’s modest tightening, with inflation developments likely to be closely watched amid still-elevated energy prices."

"In the near term, USD/SGD may stay largely driven by broader USD direction and risk sentiment."

"Pair was last at 1.2917. Momentum is mild bearish while RSI rose."