USD/SGD continued to commerce in a subdued vary close to current low. Pair was final at 1.2885, OCBC FX strategists Frances Cheung and Christopher Wong be aware.
SGD to proceed staying sturdy
“Day by day momentum is flat whereas RSI rose. Rebound dangers not dominated out within the close to time period. Assist right here at 1.2870. Resistance at 1.30 (21 DMA), 1.31 ranges. S$NEER was final estimated at ~1.88% above our mannequin implied mid, with mannequin implied spot decrease certain at 1.2895.”
“Core CPI for Aug re-accelerated. For the primary 8 months of the 12 months, core CPI is at 3%. This will recommend that it’s untimely for MAS to ease coverage stance at Oct MPC until MAS switches from inflation combating mode to supporting progress.
“SGD power might proceed to stick with us for somewhat longer, particularly if USD softness presses on.”
