USD's weakness likely to be a catalyst in future trades.
IG Markets Singapore said:
Overnight the SGD strengthened to test 1.2360 against the US dollar, which has been a key support level for the cross so far in February. Having hit that mark in late US trade we have once again moved marginally higher.
If we do see the 1.2360 support truly broken there could be scope to move back towards the 1.2220-80 range which we held in the middle of January. General USD weakness is likely to be the catalyst for this, though attention will be given to our GDP figures out on Friday.
OCBC Daily Bank noted:
Elsewhere, the SGD NEER is currently around +0.85% above its perceived parity (1.2480) with the extreme strong end of the NEER fluctuation band seen around 1.2295. Meanwhile, expect the 200-day MA (1.2413) to cap for now.
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