SGD Upside Risk Remains as USD Sees Downside Pressure

UOB analysts Quek Ser Leang and Lee Sue Ann see upside risk for the Singapore Dollar (SGD) against the US Dollar (USD). They note that USD/SGD rebounded after a sharp drop to 1.2752, easing immediate downside pressure and pointing to intraday consolidation between 1.2760 and 1.2795.

However, the analysts maintain their view that there is still a risk for the US Dollar (USD) on the downside over the next 1-3 weeks. They suggest that USD could move towards 1.2740 if it breaks below 1.2765.

The analysts observed that despite the rebound from the low of 1.2752, the immediate downward pressure has eased, and instead of continuing to decline, USD is more likely to consolidate within a range of 1.2760/1.2795.