Singapore Dollar: UOB maintains range-bound outlook against US Dollar

USD/SGD reached 1.2814, exceeding expectations. United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that the pair rose beyond the previously expected intraday range. Near-term momentum points to a possible test above 1.2820, although further gains are expected to be limited. For the coming weeks, UOB forecasts a 1.2775–1.2835 trading range, with upside risk extending only on a break of 1.2871.

Tight Range Limits Upside

"24-HOUR VIEW: Yesterday, we indicated that USD “is likely to trade in a range between 1.2765 and 1.2790.” Our view of range-trading was incorrect, as USD rose to a high of 1.2814. The advance has scope to rise above 1.2820, but based on the prevailing momentum, a continued rise above this level appears unlikely. The next resistance at 1.2835 is also unlikely to come under threat. Support is at 1.2800, followed by 1.2790."

"1-3 WEEKS VIEW: We turned negative on USD early last week. Yesterday (26 Oct, spot at 1.2780), we indicated the following: “Since then, USD has traded mostly in a range, but while downward momentum is starting to slow, there remains a chance for USD to test 1.2750. Based on the prevailing momentum, a continued decline below this level is unlikely. On the upside, a clear break above 1.2795 (‘strong resistance’ level) would mean that USD could continue to range-trade for a period.” USD subsequently broke above 1.2795, rising to a high of 1.2814. The increase in upward momentum is not sufficient to indicate a sustained rise. From here, we expect USD to trade in a range between 1.2775 and 1.2835."

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