USD/CNH: Likely to lead to a lower range of 7.1170/7.1280 – UOB Group

FXStreet Insights Team FXStreet

Slight increase in downward momentum is likely to lead to a lower range of 7.1170/7.1280. In the longer run, USD has likely entered a range-trading phase between 7.1120 and 7.1330, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD has likely entered a range-trading phase

24-HOUR VIEW: "Yesterday, we expected USD to 'trade in a range of 7.1220/7.1350'. USD subsequently traded between 7.1205 and 7.1295. There has been a slight increase in downward momentum, but this is likely to lead to a lower range of 7.1170/7.1280 rather than a sustained decline."

1-3 WEEKS VIEW: "We have held a mildly positive USD view since early this week. Two days ago (05 Nov, spot at 7.1340), we highlighted that 'there is scope for USD to test 7.1450'. USD did not test 7.1450. Instead, it eased to a low of 7.1205 yesterday. Although our ‘strong support’ level has not been breached yet, the mild upward momentum has largely faded. USD has likely entered a range-trading phase, and for the time being, we expect it to trade between 7.1120 and 7.1330."

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 pops to yearly highs near 1.1770

EUR/USD rapidly reverses course and hits fresh YTD tops near 1.1780 at the end of the week. The pair’s U-turn comes on the back of the intense sell-off in the Greenback amid the generalised risk-on context.

GBP/USD climbs to four-month tops near 1.3600

GBP/USD is building on its solid weekly advance and is pushing toward the 1.3600 hurdle on Friday, or new four-month peaks. Cable’s strong move higher comes as the Greenback intensifies its decline, while auspicious results on the UK calendar also collaborate with the uptrend.

Gold picks up pace, approaches $5,000

Gold prices keep their uptrend well in place and gear up for an imminent hit to the key $5,000 mark per troy ounce on Friday. The yellow metal’s sharp advance gathers pace amid the increasing weakness in the US Dollar and mixed US Treasury yields across the curve.