US Greenback (USD) is more likely to commerce in a spread between 151.30 and 152.70. Within the longer run, the present worth actions are probably the early phases of a 149.50/153.00 range-trading section, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Present worth actions are probably part of a range-trading section
24-HOUR VIEW: “The sharp plunge in USD that reached a low of 151.15 final Friday got here as a shock (we have been anticipating range-trading). Whereas USD closed on a weak notice at 151.15 (-1.25%), it opened sharply larger at the moment. The quick downward strain seems to be easing, and as an alternative of constant to say no, USD is extra more likely to commerce in a spread at the moment, anticipated to be between 151.30 and 152.70.”
1-3 WEEKS VIEW: “Our most up-to-date narrative was from final Wednesday (07 Oct, spot at 150.35), during which we highlighted that ‘additional USD energy is probably going, and the extent to observe is 153.80.’ USD rose to a excessive of 153.27 on Friday, after which, in an abrupt reversal, plunged and closed decrease by 1.25% (151.15). The breach of our ‘robust assist’ at 151.40 signifies that the USD energy from early final week (as annotated within the chart beneath) has ended. The present worth actions are more likely to early phases of a range-trading section, in all probability between 149.20 and 153.00.”
