USD/CNH: Likely to trade in a range between 7.1280 and 7.1500 – UOB Group
US Dollar (USD) is likely to trade in a range between 7.1280 and 7.1500. In the longer run, USD is expected to trade in a range between 7.1200 and 7.1550, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD is expected to trade in a range
24-HOUR VIEW: "We expected USD to 'range-trade between 7.1300 and 7.1480' last Friday. We did not expect the volatile price action, as USD dropped to 7.1250, and then soared to a high of 7.1500. The sharp rise appears o be excessive. This, combined with the pullback at the open today, suggests USD is unlikely to rise much further. Today, we expect USD to trade in a range, most likely between 7.1280 and 7.1500."
1-3 WEEKS VIEW: "Last Friday (10 Oct, spot at 7.1370), we revised our USD view from positive to neutral. We indicated that USD 'is expected to trade in a range for now, most likely between 7.1200 and 7.1550.' USD subsequently dropped to 7.1250 and then rose sharply to 7.1500. Upward momentum is building again, but not sufficient to indicate a continued rise. To put it another way, we continue to expect USD to trade in a range between 7.1200 and 7.1550 for now."
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