The UOB Group’s FX analysts, Quek Ser Leang and Lee Sue Ann, have provided insights regarding the trading range of the USD/CNH pair.
They anticipate that in the short term, the US Dollar (USD) is likely to trade within a range of 7.2650 to 7.2900. Looking back at last Friday’s expectations, when they had predicted a trading range of 7.2550/7.2800, the USD actually traded in a higher range of 7.2558/7.2869 before closing at 7.2846, showing a 0.29% increase. Despite a slight uptick in momentum, it’s believed that this will result in a shift to the new higher trading range of 7.2650/7.2900 rather than signifying a sustained upward trend.
In the 1-3 weeks view, not much has changed from the update provided last Friday when the spot was at 7.2660. As previously stated, the current price movements are likely part of range trading, with the probable range being between 7.2400 and 7.2900. However, going forward, if the USD breaks and remains above 7.3145, it would suggest the beginning of a sustained upward movement. Overall, the UOB Group’s analysis points to a period of range trading for the USD/CNH pair for now, with specific thresholds to watch for any potential shifts in the broader trend.
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