FX Strategists at UOB Group keep the neutral stance unchanged on EUR/USD for the time being.
Key Quotes
24-hour view: “Our expectation that the risk for EUR is ‘tilted to the upside’ from yesterday was wrong as it plummeted to and hit an overnight low of 1.0800. The subsequent soft daily closing in NY (1.0822, -0.31%) has resulted in an improvement in downward momentum and the current weakness in EUR could extend lower. From here, as long as EUR does not move above 1.0860 (minor resistance is at 1.0840), further decline towards 1.0775 would not be surprising. For today, the major support at 1.0750 could be just out reach.”
Next 1-3 weeks: “EUR traded in a relatively quiet manner over the past few days and the price actions offer no fresh clues. We continue to hold same view from last Thursday (16 Apr, spot at 1.0890) wherein ‘the outlook is mixed’ and EUR could ‘continue to trade in an undecided manner within a broad 1.0750/1.1000 range for a period’.
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