Singapore Dollar Stuck in Tight Range Against US Dollar

According to United Overseas Bank (UOB), the Singapore Dollar (SGD) has been trading in a tight range against the US Dollar (USD). On Tuesday, USD/SGD remained largely unchanged around 1.2805, with momentum still flat. UOB analysts Quek Ser Leang and Lee Sue Ann predict that the downside risk for USD is on the horizon.

The bank's trading band remains at 1.2785-1.2815. A clear break below 1.2765 would indicate a move to 1.2740, while resistance at 1.2840 caps the upside. In their latest update, UOB analysts emphasized that there has been no increase in downward or upward momentum.

The 1-3 week view remains bearish for USD/SGD, with UOB analysts holding onto their previous prediction. A breach of 1.2765 would be required to initiate a move lower, while a break above 1.2840 could indicate fading downside risk.