The Singapore Dollar (SGD) has gained momentum against the US Dollar (USD), with the USD/SGD currency pair easing to around 1.2960, according to FX strategists Sim Moh Siong and Christopher Wong at OCBC. This movement is attributed to a softening in USD momentum following the release of core Personal Consumption Expenditures (PCE) Price Index data [1].
Despite the recent decline, the strategists note that bullish momentum on the daily chart for USD/SGD remains intact. However, the Relative Strength Index (RSI) is showing tentative signs of turning lower from near overbought conditions, suggesting a possible shift in trend. The analysts are closely monitoring whether this turnaround will persist or if dip-buying interest will re-emerge [1].
The report also highlights that quarter-end and month-end flows could potentially distort price action in the near term. Key technical levels are outlined, with support identified at 1.2940, 1.29 (the 61.8% Fibonacci retracement of the December high to the 2026 low), and 1.2840/50 (the 200-day moving average and 50% Fibonacci retracement). Resistance is seen at 1.2980 (76.4% Fibonacci retracement) and 1.3030 [1].
No specific market reactions or forward-looking statements from other analysts are mentioned in the article.
CONCLUSION
The Singapore Dollar's recent gains against the US Dollar are linked to softer USD momentum following core PCE data. While technical indicators suggest a potential shift, OCBC strategists remain watchful for further developments or renewed buying interest. Market participants should be aware of possible price distortions due to quarter-end flows.