Singapore Dollar: Is Range-Bound Trading Against the US Dollar Likely? – UOB

USD/SGD is expected to remain close to current levels, while portfolio outflows and cautious sentiment ahead of US midterm elections continue to weigh on broader Asian FX, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann. The pair traded in a narrow range on Monday as a slightly firmer SGD NEER lent support to the Singapore Dollar. The analysts expect the SGD NEER to remain 1.30%–1.80% above its policy midpoint, keeping USD/SGD range-bound near current levels.

Will USD/SGD Continue to Trade Sideways?

"24-HOUR VIEW: Yesterday, we expected USD “to trade in a range between 1.2775 and 1.2800.” We were not wrong, as USD traded within a 1.2775/1.2797 range before settling at 1.2794 (+0.10%). We continue to expect range-trading today, but the slightly firmer underlying tone suggests USD is likely to trade in a higher range of 1.2785/1.2810."

"1-3 WEEKS VIEW: In our most recent narrative from one week ago (27 Oct, spot at 1.2810), we highlighted that USD “is likely to trade between 1.2775 and 1.2835.” Since then, USD has traded within a 1.2771/1.2837 range. With no clear increase in either downward or upward momentum, we continue to expect USD to trade between 1.2775 and 1.2835."

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