USD/SGD: Two-way trade near strong NEER – OCBC

💡 DMK Insight

USD/SGD is hovering near recent lows, and here’s why that matters: With the latest US CPI and labor data showing softness, expectations for a Fed rate cut are solidifying. This environment typically weakens the Dollar, making it crucial for traders to monitor USD/SGD closely. If the pair breaks below its recent lows, it could trigger further selling pressure, especially if the broader market sentiment shifts towards risk-on assets. Look for potential support levels that could provide a bounce-back opportunity, but be cautious of any sudden volatility as traders react to upcoming economic indicators. On the flip side, if the Fed maintains a hawkish stance unexpectedly, we could see a sharp reversal in USD/SGD. Keep an eye on the next CPI release and any Fed commentary for clues on future direction. For now, the subdued range suggests a wait-and-see approach might be prudent, but be ready to act if key levels are breached.