The pair is seen within the 111.45/112.90 range in the near term, noted FX Strategists at UOB Group.
24-hour view: “We expected USD to ‘probe’ the bottom of the expected 112.00/112.70 consolidation range yesterday. USD dipped to an overnight low of 112.06 before recovering quickly. The recent mild downward pressure has eased with the recovery and USD has likely moved into a consolidation phase. In other words, sideway trading is expected from here, likely within a 112.20/112.70 range”.
Next 1-3 weeks: “We just turned neutral on USD yesterday and there is no change to the view. The 113.43 high registered last Friday is deemed as a short-term top and USD has likely moved into a consolidation phase. That said, the immediate bias is tilted to the downside but at this stage, any weakness is unlikely to move clearly below the expected 111.45/112.90 consolidation range”.
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