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OCBC strategists Sim Moh Siong and Christopher Wong highlight potential upside risks for the USD/SGD currency pair due to ongoing geopolitical tensions in the Hormuz Strait. The standoff has dampened global risk appetite and increased imported cost pressures, particularly affecting Singapore's trade-dependent economy. As a result, the Singapore Dollar (SGD) faces downward pressure against the US Dollar (USD), with the USD/SGD pair likely to test key resistance levels. The Hormuz crisis disrupts critical oil and gas trade routes, amplifying inflationary pressures and prompting central banks to adopt cautious monetary policies. For traders, this scenario underscores the importance of monitoring geopolitical developments and their ripple effects on commodity markets and safe-haven demand. Market participants should watch for updates on regional stability, oil price movements, and Singapore's inflation data to gauge the pair's trajectory.
