Likely to trade in a range between 6.9620 and 6.9820 – UOB Group

US Dollar (USD) is likely to trade in a range between 6.9620 and 6.9820. In the longer run, USD remains neutral but is now expected to trade in a lower range of 6.9520/6.9900, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH remains neutral for now

24-HOUR VIEW: “Following last Friday’s price action, we highlighted yesterday that ‘the underlying tone has softened somewhat, but this is likely to lead to USD trading in a range of 6.9700/6.9860 rather than a continued decline’. However, USD traded in a lower range than expected (6.9630/6.9750). There has been no clear increase in downward momentum, and we continue to expect USD to trade in a range today, most likely between 6.9620 and 6.9820.”

1-3 WEEKS VIEW: “We have maintained a neutral USD view since last Thursday (08 Jan, spot at 6.9900), and we expected USD to ‘trade between 6.9660 and 7.0160’. While USD dipped below 6.9660 yesterday (low of 6.9630), downward momentum only increased slightly. To put it another way, we maintain our neutral view, but we now expect USD to trade in a lower range of 6.9520/6.9900.”