Singapore Dollar Faces Resistance at 1.2850

Singapore's currency, the Singapore Dollar (SGD), has seen some modest gains against its US counterpart, but experts at United Overseas Bank (UOB) warn that upside is capped by a strong resistance level.

According to UOB's Quek Ser Leang and Lee Sue Ann, the USD/SGD pair closed at 1.2835 after reaching both 1.2800 and 1.2840. While short-term momentum favors a mild upside, they stress that strong resistance at 1.2850 is likely to limit gains.

Looking ahead, the analysts maintain their view that a break below 1.2790 is needed to signal further weakness in the USD/SGD pair on a 1-3 week horizon. As it stands, they see downside risk lingering despite the recent upward pressure.