USD/CNH: Likely to trade in a lower range of 7.1750/7.1930 – UOB Group
Slight increase in downward momentum is likely to lead to a lower range of 7.1750/7.1930. In the longer run, US Dollar (USD) has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Slight increase in downward momentum
24-HOUR VIEW: "We expected USD to “trade in a range between 7.1830 and 7.2030” yesterday. USD then traded between 7.1854 and 7.1975, closing slightly lower at 7.1860 (-0.13%). There has been a slight increase in downward momentum, but this is likely to lead to a lower range of 7.1750/7.1930 instead of a sustained decline."
1-3 WEEKS VIEW: "Our latest narrative was from last Monday (09 Jun, spot at 7.1870), wherein USD has likely moved back into a range trading phase, probably between 7.1620 and 7.2200.' It’s been more than a week, and USD is still trading within the range, and we continue to hold the same view for now."
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