Key Points:
- USDSGD slips 0.5%, touching a low of 1.30345.
- Market sentiment remains under pressure from President Trump’s rhetoric against U.S. institutions, especially the Federal Reserve.
- Geopolitical instability and U.S. policy uncertainty continue to weigh on the dollar.
Singapore Dollar Strengthens Amid U.S. Economic Volatility
The Singapore dollar gained against the U.S. dollar on Thursday, pushing USDSGD down 0.5%, with the pair reaching a low of 1.30345, its lowest intraday level since October. This movement was driven by market concerns over U.S. political developments, particularly President Donald Trump’s ongoing criticisms of the Federal Reserve.
Trump’s attack on Fed Chairman Jerome Powell, stating that “Powell’s termination cannot come fast enough,” has fueled concerns about the stability of U.S. institutions. These comments have intensified the sell-off of U.S. assets, leading to a weaker dollar and bolstering currencies like the Singapore dollar.
Despite these developments, the Singapore dollar remains relatively resilient, supported by safe-haven demand amid global market instability. The broader risk-off sentiment continues to fuel the sell-off in U.S. assets, thus reinforcing the SGD’s gains.
Technical Outlook for USDSGD
Picture: USDSGD faces resistance at 1.31307, with downward pressure near 1.30345—learn more on the VT Markets app.
USDSGD decreased by -0.47%, closing at 1.30397 after opening at 1.3101. The pair saw a decline, reaching a low of 1.30345, before retracing slightly to close near 1.30397.
The moving averages (MA 5,10,30) show a bearish bias, with the shorter-term moving averages below the longer-term ones. This suggests potential further downside momentum. The MACD (12,26,9) supports this trend, showing a negative histogram as the MACD line (blue) remains below the signal line (yellow).
Key levels to monitor include 1.31307 as immediate resistance and 1.30345 as support. A break below support could suggest further downside movement, while a rise above resistance may signal a potential reversal.
USDSGD is currently under selling pressure, with the price trending downward. A sustained move below 1.30345 could indicate further declines, while a move above 1.31307 might signal a bullish reversal. Keep an eye on global market developments to gauge future movements.
As political and economic uncertainties surrounding U.S. policies continue to unfold, the USDSGD pair may face further downward pressure in the short term. Market participants will be closely watching the developments in the U.S. political environment, particularly regarding Trump’s stance on the Federal Reserve and broader trade policies.
