FOMC and Yields Shape Singapore Dollar (SGD) Trading Against US Dollar – OCBC

MAS’s October decision has shifted attention back to external drivers. OCBC’s Christopher Wong notes that USD/SGD edged down alongside the broader USD and US Treasury yields before recovering some losses. OCBC remains constructive on SGD over the medium term, but sees limited potential for outperformance with S$NEER in the upper band. FOMC and key support and resistance levels remain in focus.

USD and US yields steer SGD

"USD/SGD drifted lower for much of last week, tracking the broader decline in USD and US Treasury yields, before paring some of its losses on Friday. With MAS’s October policy decision behind us, external developments have returned as the main driver of USD/SGD."

"We retain a constructive medium-term SGD outlook, although near-term direction remains sensitive to USD movements, US Treasury yields and RMB."

"The S$NEER’s model-implied position in the upper half of the policy band may also limit scope for further SGD outperformance vs peers unless USD falls in a big way."

"Daily momentum is mild bearish while decline in RSI moderated. 2-way trades likely for now."

"Support at 1.2750 (50 DMA), 1.2740 (61.8% fibo retracement of 2026 low to high). Resistance at 1.2790 (21 DMA, 50% fibo), 1.2820 (100 DMA)."

(An editor reviewed this article, which was produced with assistance from an Artificial Intelligence tool. Learn more.)