OCBC strategists Sim Moh Siong and Christopher Wong flag slight upside dangers for USD/SGD because the Hormuz standoff weighs on danger urge for food and imported price pressures. Whereas Singapore Greenback (SGD) stays a regional defensive foreign money, they word 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 go by means of provide chains.
Defensive SGD faces inflation pressures
“Slight upward danger. USD/SGD inched greater in a single day monitoring the broad USD rebound.”
“Pair was final at 1.2780 ranges. Bearish momentum on each 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).”
“Help 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 in opposition to 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 vitality 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 device and reviewed by an editor.)
