OCBC strategists Sim Moh Siong and Christopher Wong expect USD/SGD to remain largely driven by the broader U.S. dollar (USD) direction and risk sentiment, after recently trading in a swing range around the 1.29 low. With Singapore’s Consumer Price Index (CPI) due to be released on July 23 and its review by the Monetary Authority of Singapore (MAS) likely to take place next week, their view is that MAS will remain unchanged while monitoring inflation in the context of still elevated energy prices.
Range trading before MAS decision
“USD/SGD remained largely range-bound around the low of 1.29, with the USD decline following US CPI continuing due to geopolitical re-escalation and deteriorating sentiment on the AI sell-off.”
“The focus this week will be on the Singapore CPI (July 23) ahead of the MAS policy review, likely in the week of July 27-31.”
“Our House view indicates that the MAS will remain unchanged following the moderate tightening of monetary policy in April, with inflation developments likely to be closely watched in the face of still elevated energy prices.”
“In the near term, USD/SGD may remain largely driven by broader USD direction and risk sentiment.”
“The last pair was at 1.2917. The momentum is slightly bearish while the RSI has increased.”
(This article was created with the support of an artificial intelligence tool and has been reviewed by an editor. Find out more.)
