USD/SGD Steadies Near 1.28 Amid Geopolitical Risks
The US dollar (USD) against the Singapore dollar (SGD) traded steadily around 1.28 after the release of softer-than-expected US Producer Price Index data, which reduced expectations for Federal Reserve rate hikes and pushed US Treasury yields lower.
However, geopolitical developments limited the USD's downside momentum, with reports of new drone attacks on Saudi Aramco's Jazan refinery and the US stating it could maintain a naval blockade of Iranian ports indefinitely. The pair was last seen near 1.28.
Techincal conditions pointed to range trading, with daily-chart momentum described as mildly bearish and RSI flat. Support was identified at 1.2770, the recent low, and at 1.2740, the 61.8% fibo level. Resistance was placed at 1.2830/40, aligning with the 100 and 200 DMAs and the 38.2% fibo retracement of the 2026 low to high.
Derivative traders are advised to focus on range-bound strategies for the coming weeks, with momentum flattening after the softer US PPI data. This approach capitalizes on the market's current indecision following the release of the soft inflation data.