The US Dollar (USD) is likely to trade in a range between 7.1100 and 7.1430. In the longer run, strong and sudden surge suggests further USD strength to 7.1600, potentially 7.1900, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD to trade in a range between 7.1100 and 7.1430
24-HOUR VIEW: “Two days ago, USD soared. Yesterday, we indicated that ‘USD strength is likely to continue’ Our view did not turn out, as USD traded in a relatively quiet manner between 7.1138 and 1.7383, closing largely unchanged at 7.1345 (-0.03%). The current price movements are likely part of a range trading phase. Today, we expect USD to trade between 7.1100 and 7.1430.”
1-3 WEEKS VIEW: “After USD soared two days ago, we turned positive in USD yesterday (16 Oct, spot at 7.1350), indicating that ‘the strong and sudden surge suggests further USD strength to 7.1600, potentially 7.1900. We highlighted that ‘to keep the momentum going, USD must not break below the ‘strong support’ level, now at 7.0900.’ There is no change in our view.”