USD/CNH: Likely to trade in a narrower range of 7.2500/7.3300 – UOB Group
|The US Dollar (USD) is expected to trade in a range between 7.3000 and 7.3200 against the Chinese Yuan (CNH). In the longer run, the outlook remains mixed, but USD is likely to trade in a narrower range of 7.2500/7.3300, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Outlook for USD remains mixed
24-HOUR VIEW: "USD traded in a subdued manner and closed largely unchanged two days ago. Yesterday, we pointed out that 'momentum indicators are mostly flat.' We expected USD to 'trade in a range between 7.3000 and 7.3200.' Our view of range trading was not wrong, even though USD traded in a slightly higher range of 7.3050/7.3249. USD closed largely unchanged at 7.3110 (+0.01%). Momentum indicators remain flat, and we continue to expect USD to trade in a range between 7.3000 and 7.3200."
1-3 WEEKS VIEW: "We highlighted last Friday (07 Feb, spot at 7.2865) that 'while the outlook remains mixed, the decreasing volatility over the past couple of days suggests USD could trade in a narrower range of 7.2500/7.3300.' There is no change in our view."
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