OCBC strategists Sim Moh Siong and Christopher Wong flag slight upside dangers for USD/SGD because the Hormuz standoff weighs on threat urge for food and imported price pressures. Whereas Singapore Greenback (SGD) stays a regional defensive forex, they notice fading bearish momentum and rising RSI on USD/SGD, alongside expectations that Singapore inflation will speed up towards 2% as energy-related prices from the Center East battle cross by way of provide chains.
Defensive SGD faces inflation pressures
“Slight upward threat. USD/SGD inched larger in a single day monitoring the broad USD rebound.”
“Pair was final at 1.2780 ranges. Bearish momentum on every day chart light whereas RSI rose.”
“Dangers considerably skewed to the upside for now. Resistance right here at 1.2790/1.28 ranges (21, 100 DMAs, 38.2% fibo retracement of 2026 low to excessive), 1.2850 (200 DMA, 23.6% fibo).”
“Assist at 1.2750/60 ranges (50 DMA, 50% fibo), 1.2670 (76.4% fibo). On relative phrases, SGD can proceed to commerce like a regional defensive play, holding up higher towards higher-beta FX.”
“Wanting forward our economists see the extended US-Iran warfare and the continued closure of the Strait of Hormuz to set off power and petrochemical-related prices for companies which may add to the inflationary pass-through into 2Q26 and probably past.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
