Singapore Dollar Holds Steady Against US Dollar Amid Sideways Trade

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Singapore Dollar (SGD) is expected to remain stable against the US Dollar (USD). The analysts maintain a constructive short-term view on USD/SGD, citing recent sideways trade around 1.2760 as evidence. They note that the pair has been trading within a narrow intraday band and expect this trend to continue.

The analysts highlight that strong support at 1.2725 is in place, which they consider a key level to watch. If breached, it would indicate that USD has entered a range-trading phase. On the other hand, resistance levels at 1.2800 and 1.2835 remain in focus.

In their previous analysis from last Thursday (17 Sep), the analysts had highlighted that the outlook for USD remains positive. They noted that the levels to watch are indeed 1.2800 and 1.2835, and since then, USD has been trading mostly sideways. However, upward momentum is starting to ease, which could lead to further sideways trading.