OCBC’s Sim Moh Siong and Christopher Wong note USD/SGD is consolidating around 1.28 as softer United States (US) Producer Price Index (PPI) trims Federal Reserve (Fed) hike expectations but fails to trigger fresh US Dollar (USD) selling. While they still see downside risks over time, geopolitical tensions and the pair’s inability to break lower suggest the next leg down may be challenging.
Range trade, geopolitics and support levels
“USD/SGD remained subdued around 1.28 overnight. Softer-than-expected US PPI saw Fed hike expectations pared further and US Treasury yields eased, but the USD showed little follow-through to the downside.”
“Geopoliti…
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