According to OCBC strategists Sim Moh Siong and Christopher Wong, the Singapore Dollar (SGD) has traded in a narrow range around the low-1.29s against the US Dollar (USD), with the most recent level at 1.2917 [1]. The strategists note that the USD/SGD pair's movement has been largely influenced by broader USD direction and overall risk sentiment, especially after a recent USD pullback following the US CPI data did not extend due to renewed geopolitical tensions and an AI-related selloff impacting market sentiment [1].
Market attention is now shifting to Singapore's Consumer Price Index (CPI) release scheduled for 23 July, followed by the Monetary Authority of Singapore (MAS) policy review, which is likely to take place in the week of 27–31 July [1]. OCBC's house view anticipates that MAS will maintain its current policy stance, having implemented a modest tightening in April, and will continue to monitor inflation developments closely, particularly given persistently high energy prices [1].
In the near term, OCBC expects USD/SGD to remain largely rangebound and driven by external factors such as USD movement and risk sentiment, with technical indicators showing mild bearish momentum and a rising RSI [1].
CONCLUSION
The Singapore Dollar is expected to remain stable ahead of key economic events, with market participants closely watching the upcoming CPI release and MAS policy review. OCBC anticipates no immediate policy changes from MAS, as inflation and energy prices remain in focus.