FX Strategists at UOB Group noted the pair’s outlook remains neutral and is expected to keep the sideline theme in the next weeks.
Key Quotes
24-hour view: “Expectation for USD to “grind higher” yesterday did not materialize as it dropped sharply to a low of 111.93 before rebounding quickly. The rapid swing has resulted in a mixed outlook and USD could continue to trade in a choppy manner. That said, yesterday’s relatively wide 111.93/112.84 range is likely enough to contain today’s price action”.
Next 1-3 weeks: “There is not much to add as USD edged higher and touched an overnight high of 112.88. The high is well within the expected 111.80/113.30 consolidation range that we first indicated last Thursday (18 Oct, spot at 112.65). Indicators are mostly ‘flat’ and at this stage, there is no early indication that USD is ready to break out the range”.
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