USD/SGD Holds Ground Ahead of Warsh's Jackson Hole Speech

The USD/SGD exchange rate has remained rangebound as resilient US economic data supports the dollar, but markets are holding back ahead of Federal Reserve Chair Warsh's Jackson Hole speech on Friday.

According to VT Markets, the pair edged firmer after strong US GDP growth and steady consumer spending halted the greenback's decline. However, trading has stayed subdued due to the anticipation of fresh catalysts from the Fed chair's speech.

The daily chart indicates mildly bearish momentum, but the Relative Strength Index (RSI) is rising from near-oversold territory, leaving scope for a short-term bounce in USD/SGD and corresponding downside risk for the Singapore dollar. Key resistance levels sit at 1.2740, a 61.8% Fibonacci retracement of the 2026 low-to-high move, and then 1.2780/90, which aligns with the 50% Fibonacci level and the 21-day moving average.

For derivative traders, there are immediate tactical opportunities to position for a near-term bounce in USD/SGD. VT Markets recommends buying short-term call options to capture this upward correction, especially with the Fed chair's speech happening later today. Any hawkish signals regarding sticky inflation could quickly push the pair past the immediate resistance at 1.2740.