UOB Strategists Warn of Downside Risk in SGD/USD

According to UOB's Quek Ser Leang and Lee Sue Ann, the Singapore Dollar is expected to remain in a tight range against the US Dollar. The pair is currently trading between 1.2785 and 1.2815 after Monday's modest rebound. Despite the recent decline, the strategists still see downside risk, but note that a clear break below 1.2765 is needed to open up the possibility of further declines.

The USD/SGD pair has been range-trading in this area for several weeks, and the current price movements are unlikely to lead to any significant gains or losses. The strategists highlight that while there is still downside risk, a clear break below 1.2765 would be required before further declines can be expected.

The pair's recent strong momentum suggests that it may continue to move in a range-trading phase, with the next level of support at 1.2740 if the USD breaks and holds below 1.2790.