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In view of FX Strategists at UOB Group, further upside in spot is unlikely to be sustained.

Key Quotes

24-hour view: “USD traded sideways between 110.35 and 110.78 last Friday, slightly narrower than our expected 110.30/110.80 consolidation range. The outlook remains mixed and further sideway trading seems likely. That said, the underlying tone has weakened somewhat and this could lead to a lower trading range of 110.20/110.70″.

Next 1-3 weeks: “The price actions over the past couple of days offer no fresh clues and we continue to hold the same view wherein “USD is expected to stay supported but any strength is unlikely to be sustained”. Only a break of the 110.10 ‘key support’ would indicate that the current upward pressure has eased. Until then, there is scope for USD to test the recent high near 111.10 but at this stage, the odds for further extension to 111.50 are not high”.