There was no additional enhance in downward momentum; as an alternative of weakening, US Greenback (USD) is more likely to commerce between 144.60 and 145.70. Within the longer run, USD stays in consolidation, however doubtless inside a tighter vary of 144.50/147.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
USD stays in consolidation
24-HOUR VIEW: “When USD was at 145.30 within the early Asian session yesterday, we highlighted that ‘downward momentum is constructing, and USD might drop under 144.90.’ Nevertheless, we have been of the view that ‘the foremost help at 144.50 is unlikely to return underneath menace.’ We weren’t fallacious, as USD dropped to 144.64 earlier than settling decrease by 0.53% at 144.85. There was no additional enhance in downward momentum, and as an alternative of weakening right this moment, USD is extra more likely to commerce between 144.60 and 145.70.”
1-3 WEEKS VIEW: “We highlighted yesterday (19 Mays, spot at 145.30) that USD ‘stays in a consolidation, however we now tighten the vary to 144.50/147.30.’ We additionally highlighted that, ‘Wanting forward, ought to USD break clearly under 144.50, it might set off a deeper decline.’ There isn’t any change in our view.”
