UOB Sees Further SGD Losses, Targets USD/SGD at 1.2960

UOB analysts Quek Ser Leang and Lee Sue Ann highlight that USD/SGD surged past the 1.29 level following a blowout US nonfarm payrolls report. They note that while the SGD NEER (Nominal Effective Exchange Rate) is still trading well above its perceived policy band, the pair may extend gains toward 1.2960.

The analysts see further SGD weakness as the market continues to price in a stronger US economy and a more hawkish Fed policy stance. The S$NEER remains elevated, but the momentum from the jobs data may override this constraint in the near term.