According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Singapore Dollar's upside momentum against the US Dollar has eased, with the USD/SGD currency pair remaining under mild downward pressure but exhibiting flat short-term momentum. The pair has been trading in a tight intraday band around 1.2700, with recent price action showing a low of 1.2682 last Friday and a close at 1.2699, representing a -0.19% change. The following day, USD/SGD traded within a narrower range than expected (1.2688/1.2711) and closed little changed at 1.2707 (+0.06%) [1].
UOB maintains a negative 1–3 week bias for USD/SGD, with a focus on support at 1.2670. However, the analysts note that downward momentum is starting to slow, and oversold conditions could limit further declines. They highlight that a break above 1.2740 would signal a shift into range-trading and reduce the prospects of further downside for the US Dollar against the Singapore Dollar [1].
Momentum indicators are described as mostly flat, and UOB expects the USD/SGD to continue trading in a range, most likely between 1.2690 and 1.2720 in the near term. The analysts reiterate that while the risk for USD remains on the downside, the pace of any further decline is likely to slow due to current market conditions [1].
CONCLUSION
UOB analysts observe that the USD/SGD pair is experiencing easing downside momentum and is likely to remain range-bound in the near term. While the bias remains negative for the US Dollar, oversold conditions and flat momentum indicators suggest limited further downside. Market impact is expected to be low unless a significant technical level is breached.