Expected to edge higher to 157.15 – UOB Group

US Dollar (USD) is expected to edge higher to 157.15; based on the current momentum, any further advance is unlikely to reach 157.50. In the longer run, USD is likely to trade in a range between 155.60 and 157.50, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD is likely to trade in a range

24-HOUR VIEW: “USD traded in a choppy manner between 156.09 and 157.29 two days ago. Yesterday, we stated that ‘the sharp but short-lived swings have resulted in a mixed outlook’, and we were of the view that USD ‘could continue to trade in a choppy manner, likely between 156.20 and 157.20’. However, USD traded within a narrower range than expected (156.14/156.79), closing modestly higher at 156.62 (+0.15%). Despite the relatively quiet price action, there has been a slight increase in upward momentum. Today, we expect USD to edge higher toward 157.15. Based on the current momentum, any further advance is unlikely to reach 157.50. Support is at 156.55, followed by 156.30.”

1-3 WEEKS VIEW: “There is not much to add to our update from yesterday (06 Jan, spot at 156.70). As highlighted, USD ‘is likely to trade in range for now, most likely between 155.60 and 157.50’.”