EUR/USD relegated to the 1.0725/1.0940 range – UOB

In opinion of FX Strategists at UOB Group, the outlook on EUR/USD remains mixed and still prevails the rangebound theme between 1.0725 and 1.0940 for the time being.

Key Quotes

24-hour view: “EUR traded between 1.0816 and 1.0885 yesterday, higher than our expected range of 1.0790/1.0870. Despite the relatively firm daily closing in NY (1.0873, +0.51%), upward momentum has not improved by much. For today, EUR could edge higher but any advance is viewed as part of 1.0820/1.0900 range (a sustained advance above 1.0900 is not expected).”

Next 1-3 weeks: “We have held the same view since 16 Apr (spot at 1.0890) wherein ‘the outlook is mixed’ and EUR could ‘continue to trade in an undecided manner within a broad 1.0750/1.1000 range for a period’. When EUR moved towards the bottom of our expected range at 1.0750, we indicated last Friday (24 Apr, spot at 1.0780) that only ‘a NY closing below 1.0720 would suggest EUR could weaken further to 1.0635’. EUR subsequently dipped to 1.0725 before staging a robust rebound. Downward pressure has eased and the outlook for EUR remains mixed for now. From here, EUR could continue to trade in an undecided manner and a 1.0725/1.0940 range is likely wide enough to contain the movement in EUR for a while more.”