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FX Strategists at UOB Group noted EUR/USD is expected to keep the consolidative stance unchanged in the next weeks.

Key Quotes

24-hour view: “We expected EUR to strengthen yesterday but were of the view ‘1.1330 is unlikely to come into the picture’. However, EUR soared to an overnight high of 1.1348 before easing off quickly. While upward pressure has eased somewhat, it is too soon to expect a sustained pullback. The current movement is viewed as part of a consolidation phase and for today; EUR is likely to trade between 1.1270 and 1.1350.”

Next 1-3 weeks: “While EUR closed on a relatively strong note for the second day in a row (1.1306, +0.43%), there is no change to our view. As highlighted yesterday (23 Jun, spot at 1.1270), the movement in EUR is viewed as a consolidation phase and EUR is expected to trade between 1.1170 and 1.1380 for a period. Looking forward, the risk appears to be higher on the upside but EUR has to close above 1.1400 in order to indicate it is ready to move towards the March’s peak at 1.1492. At this stage, the odds for such a scenario are not high.”