The USD/SGD is near 1.29520 as of this writing, this after seeing mid-term highs develop throughout Tuesday when the 1.30200 vicinity was battled.
The USD/SGD has managed to crawl down from highs seen yesterday which challenged the 1.30200 level, this as the currency pair traversed value it had not seen since May 2025. The USD/SGD is around the 1.29520 ratio at this moment, but conditions in the Forex pair and broad markets remain fast. Financial institutions are not only battling murky near-term outlooks, but the USD/SGD is also in a rather direct line of fire regarding sentiment because of the difficult trade negotiations taking place between the U.S and China.
On Thursday of last week the USD/SGD was around the 1.29350 mark but did start to incrementally move higher. While choppy conditions did flourish on Friday in the midst of sudden rhetoric from the U.S White House regarding China, most Singapore financial institutions had already gone home for the day. However, intriguingly on Monday the USD/SGD did have lows around the 1.29590 mark. But as the broad Forex market showed skittishness yesterday the USD/SGD hit mid-term highs.
Controlled Volatility for the USD/SGD
Day traders of the USD/SGD are used to seeing rather fast paced price action in the currency pair. The movements higher in the USD/SGD yesterday were volatile for speculators but they weren’t outrageous. Experienced traders in the currency pair were able to see a trend lower develop when financial institutions seemed to sell when they likely viewed the USD/SGD above the 1.30000 level as being overbought.
Technial and fundamental traders have some things in common within the USD/SGD at this moment. From a technical viewpoint depending on perspective the currency pair can still be viewed as being within elevated terrain. From a fundamental outlook some large players in the USD/SGD may believe calmer days will develop again and that behavioral sentiment will start to improve regarding potential downside in the currency pair, if the U.S and China can find a compromise. But timeframes are dangerous.
Rhetoric and Choppy Near-Term Conditions
Trade rhetoric between the U.S and China may remain loud in the meantime. Singapore likely will have to deal with Forex transactions that are required to deal with the fallout from cautious approaches being taken. Singapore is a focal point for trade and banking in Asia, both U.S and China commerce are important to the nation.
- Meaning the USD/SGD is likely to remain choppy in the near-term and that day traders should not get too ambitious about downside moves suddenly challenging the 1.29200 level quite yet.
- Day traders are advised to look for quick hitting trades that approach perceived support and resistance levels in the near-term.
- Impetus could develop from more loud rhetoric regarding trade ‘negotiations’ between the U.S and China in the coming days which will have an impact on Singapore.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.29580
Current Support: 1.29505
High Target: 1.29650
Low Target: 1.29390
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