Outlook for USD-SGD remains on the downside

The Singapore dollar may continue to garner support from cited safe haven asset allocations, says OCBC.

OCBC Treasury Research noted:

The SGD NEER is noticeably stronger this morning at around 0.53% above its perceived parity (1.2625) with the extreme strong end of the NEER fluctuation band estimated at around 1.2380.

The SGD may continue to garner support from cited safe haven asset allocations while on the policy front, the MAS reiterated that its current policy remains appropriate for now.

Meanwhile, the outlook for the USD-SGD remains tilted south for now with the 100-day MA (1.2634) expected to be an interim ceiling with risks skewed towards 1.2525 and then 1.2500 if risk appetite levels manage to improve further today.