In view of FX Strategists at UOB Group, any USD strength is seen as part of a consolidative phase in the near term.
24-hour view: “USD traded sideways as expected, albeit at a much narrower range than anticipated. The consolidation phase appears incomplete and further range trading is expected, likely within a 111.35/112.05 range”.
Next 1-3 weeks: “USD traded in a surprising quiet manner yesterday and ended the day largely unchanged (NY close of 111.65, -0.05%). As highlighted in recent updates, we are not convinced that the post-BOJ rally in USD is the start of a bullish phase. While the immediate risk is tilted to the upside, we view any USD strength as part of a 110.60/112.50 consolidation range for now”.