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Analysts at UOB Group offer a snapshot of their outlook for DXY, EUR, AUD and GBP.

Key Quotes:

“After enduring persistent selling across the whole of last year, the USD started to stage a strong rebound since Apr, with the DXY lifted from 89 to 95.  

Concurrently, DXY positioning has now flipped into a net long. ƒ In terms of our technical indicators, the DXY rally is overbought with glaring divergence; risk for a short-term top has increased. A pull-back could carry the DXY lower to the major support zone at 93.40/60. ƒ”

“We stay positive on EUR and AUD after they have endured a fairly sizeable liquidation in long positioning. On the other hand, given the on-going uncertainties over Brexit, we stay cautious on the GBP as it remains at risk of further extension in net short positioning.”