Outlook for USD is neutral now – UOB Group

USD is likely to trade in a range between 6.9740 and 6.9900. In the longer run, outlook for USD is neutral now; it is likely to trade between 6.9660 and 7.0160, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH is likely to trade in a range between 6.9740 and 6.9900

24-HOUR VIEW: “We highlighted yesterday that ‘there has been a tentative increase in upward momentum, and USD could test the resistance at 6.9950’. We added, ‘a break above this level is not ruled out, but given the tentative momentum, any further advance is unlikely to reach 7.0050’. While we were not wrong, as USD rose to a high of 6.9956, we did not expect the sharp pullback to a low of 6.9788. Upward pressure has eased with the pullback, and today, we expect USD to trade in a range, most likely between 6.9740 and 6.9900.”

1-3 WEEKS VIEW: “Yesterday (08 Jan, spot at 6.9900), we highlighted ‘the outlook for USD is neutral now’. We expected it to ‘trade between 6.9960 and 7.0160’. Our view remains unchanged.”