USD/CNH: Expected to trade in a range between 7.2230 and 7.2520 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is expected to trade in a range between 7.2230 and 7.2520 against the Chinese Yuan (CNH). In the longer run, while there has been no significant increase in momentum, USD could potentially drop to 7.2000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD could potentially drop to 7.2000

24-HOUR VIEW: "After USD dropped sharply two days ago, we highlighted the following yesterday, when USD was at 7.2330: 'The sharp drop appears to be overdone, and while USD could recover today, as long as 7.2500 is not breached, there is potential for further downside toward 7.2200 before stabilization can be expected. The major support at 7.2000 is unlikely to come into view today.' The subsequent price movements did not quite turn out as we expected. USD dropped briefly to 7.2158, rebounded to 7.2500 and then closed at 7.2390. The weakness has stabilized, and today, we expect

USD to trade in a range 7.2230 between 7.2520."
1-3 WEEKS VIEW: "After holding a negative USD view since late last week, we indicated yesterday (12 Mar, spot at 7.2330) that 'while there has been no significant increase in downward momentum, USD could potentially drop to 7.2000.' We will continue to hold the same view, provided that the ‘strong resistance’ at 7.2650 (no change in level) is not breached."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.