The USD/SGD remains within the upper part of its mid-term price realm, the currency pair is near the 1.29625 ratio as of this writing with quick changes being displayed on trading platforms.
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The USD/SGD remains locked into the upper part of its mid-term price range. Monday’s lows near the 1.29200 vicinity displayed durable support and the currency pair has moved higher the past couple of sessions. Financial institutions seem to be embracing a cautious attitude as they seemingly wait on nervous sentiment to be verified.
Perhaps nervous sentiment via outlooks is coming from a fear that global equities remain fragile. Having said that U.S stock markets continue to produce highs amidst extreme volatility. Inflation concerns may be a talking point among some analysts, but the costs for fuel should start to de-escalate. Yet, USD centric strength in Forex is widespread and the USD/SGD is correlating to the broad market.
1.29000 Level Sustained as USD/SGD Battle Highs
Although last Thursday’s highs around the 1.29800 were fought off on Friday and early this week, the USD/SGD continues to stay within sight of higher terrain. The last time the currency pair was traversing its current price realm was in the first and second week of December 2025. Financial institutions continue to show unease. Nervous sentiment seems to be causing stronger USD price action for the moment.
The 1.29000 level has proven strong and seen sustained trading above since the 18th of June. It is not coincidence that this was immediately after the Federal Reserve’s FOMC meeting. Most large players in Forex have become rather fixated on the notion the Fed will raise interest rates at least once more this year. But speculatively, in my opinion, that mindset may be proven wrong. If the price of fuel starts to erode and inflation stays under control, it is my belief Kevin Warsh will fight against a higher interest rate.
USD/SGD Short and Mid-Term Conditions
In essence we have seen the USD/SGD traders’ price in an interest rate hike from the Fed that has not happened yet. And the question becomes what will happen if financial institutions start to believe the Fed will not act hawkishly and instead will point to lower WTI Crude Oil prices and good jobs numbers as proof it doesn’t have to raise rates.
This being said, short-term traders of the USD/SGD cannot bet over ambitiously on a spike lower happening today and tomorrow, because even if financial institutions start to look at the Fed differently they will most likely not act before this weekend.
Choppy conditions may remain prevalent for the next few days.
The U.S is celebrating the 4th of July holiday this weekend, but many large players will disappear before the weekend and remain away early next week.
Volumes in the USD/SGD will become lighter because of the holiday absences.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.29655
Current Support: 1.29615
High Target: 1.29750
Low Target: 1.29480
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