Singapore Dollar weakens as USD momentum stays bullish, with softer inflation reducing urgency for MAS policy tightening in July.
USD/SGD climbed to 1.2970 overnight, driven by broad US Dollar strength and softer risk sentiment amid a sell-off in tech and AI-linked equities. Daily momentum remains bullish, with the Relative Strength Index entering overbought territory.
Resistance is seen at 1.2980 and 1.3030, while support levels are at 1.29 and 1.2840/50. May’s headline and core inflation came in softer than expected at 1.8% and 1.4% year-on-year, respectively, easing domestic cost pressures.
Analysts expect the Monetary Authority of Singapore to remain patient, with USD/SGD likely to stay supported if the strong Dollar environment persists. Consolidation near the upper range is expected for now.