USD/SGD Analysis: Sentiment and Clarity Creating Trading Dance Lower – 13 August 2025

The USD/SGD is near 1.28200 as of this writing, this after traversing at a near-term high around 1.28700 yesterday before U.S inflation data cemented the notion the U.S Fed needs to cut interest rates.

Day traders should look at a variety of USD/SGD charts when trading today. The currency pair is near its low when looking at a near-term price action. Yesterday’s U.S Consumer Price Index numbers showed that inflation remains tame, and almost ‘certified’ that the U.S Federal Reserve will have to cut interest rates in September. The USD/SGD fell from 1.28700 to nearly 1.28100 quickly on the CPI outcome.

Today’s early price action shows the USD/SGD within its lower elements. Yes, there was a slight reversal higher after the abundant selling hit the currency pair yesterday, but values continue to flirt with lows. ; A look at a one month and a three month chart show that the USD/SGD has traded at lower depths before. Tomorrow the U.S will publish another inflation report via the Producer Price Index numbers.

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1.28000 a Barometer for Sentiment in USD/SGD

There are no sure things in Forex trading. Experienced traders know that reversals often occur and timing short-term movements is often a casino type of endeavor. The USD/SGD is clearly bouncing around the 1.28200 level as of this morning. If the currency pair doesn’t traverse too high above this level, it may indicate that financial institutions believe the 1.28100 to 1.28000 ratios will be challenged sooner rather than later.

The broad Forex market was given a confirmation regarding its USD weaker thinking yesterday. Many analysts have believed the Federal Reserve would have to cut its interest rate in September due to the weaker than expected U.S jobs numbers on the 1st of August. Yesterday’s CPI results added momentum to the belief the Federal Funds Rate must be lowered. The Fed has preached for patience because it wants to see what happens due to tariff implications. However, the weaker jobs numbers and lackluster inflation statistics show the Fed must act.

Speculative Notions for the USD/SGD

Traders should not get too overconfident if they are pursuing lower realms in the USD/SGD. Patience and conservative leverage are needed to allow a speculator to capture a target that has been planned for in Forex.

-- The USD/SGD has traded lower over the mid-term.
-- While it may seem logical for the USD/SGD to now retest lower realms seen in the not so distant past, traders without deep pockets should not aim for the greatest depths, but be satisfied with cashing out profits and remaining realistic.
-- Looking for the USD/SGD to push lower feels like the correct wager short and near-term for those pursuing the trend, but risk management is crucial.
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Singapore Dollar Short Term Outlook:

Current Resistance: 1.28220

Current Support: 1.28160

High Target: 1.28275

Low Target: 1.27980

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Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.