The pair will likely extend the current near term consolidation, noted FX Strategists at UOB Group.
24-hour view: “The strong surge in USD that hit a high of 107.29 and the subsequent rapid drop from the top was clearly unexpected. The rather wild swing has resulted in a mixed outlook and further choppy trading is expected for today; likely within a broad 106.20/107.20 range”.
Next 1-3 weeks: “We highlighted yesterday that the “prospect of a recovery above 107.00 is still intact but has diminished”. USD surprised us by surging above 107.00 and hit an overnight high of 107.29. The up-move was however short-lived and the recent upward pressure has eased with the subsequent sharp and rapid pullback from the high. Overall, the neutral phase that started 3 weeks ago remains intact but USD is more likely to trade choppily within a broad 105.70/107.50 range from here”.
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