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USD/SGD rebounds after softer US CPI, expected to consolidate
After the pair closed near 1.2913, analysts at UOB see the market holding roughly within 1.2885 to 1.2930 in the near term.
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann said USD/SGD reversed a New York-session drop after softer US Consumer Price Index data, closing near 1.2910. In their view, the move keeps the Singapore dollar trading within a relatively tight band despite the CPI-driven dip.
UOB’s Singapore Dollar Nominal Effective Exchange Rate model suggests SGD should remain 1.50% to 2.00% above its midpoint, pointing to an intraday USD/SGD range of 1.2874 to 1.2939. Short term, they expect consolidation rather than a sustained move lower.
For the 1 to 3 week outlook, UOB sees limited downside, with USD/SGD contained within 1.2860 to 1.2955. The analysts note downward momentum increased somewhat after the break below 1.2900, but they do not expect the dollar to break clearly below 1.2860 based on prevailing conditions.