US Greenback (USD) is more likely to consolidate in a variety of 142.90/144.30 towards Japanese Yen (JPY). Within the longer run, additional declines are usually not dominated out, however USD might consolidate for a few days first, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Additional declines are usually not dominated out
24-HOUR VIEW: “Yesterday, we anticipated USD to interrupt under 143.50. Nevertheless, we highlighted that ‘any additional decline is unlikely to achieve 142.70.’ Whereas our view was appropriate, USD fell greater than anticipated to 142.66 earlier than rebounding strongly to shut at 143.43, down 0.40%. The rebound in oversold circumstances signifies that, as a substitute of weakening, USD is extra more likely to consolidate in a variety of 142.90/144.30 at this time.”
1-3 WEEKS VIEW: “We revised our USD view to adverse yesterday (01 Jul, spot at 143.80), indicating that ‘downward momentum is starting to construct, and a break of 143.50 may set off additional declines towards 142.70.’ We didn’t count on USD to achieve 142.70 so quickly, because it dropped to a low of 142.66. Whereas additional declines are usually not dominated out, USD might consolidate for a few days first earlier than heading decrease. Nevertheless, ought to USD break above 144.85 (no change in ‘sturdy resistance’ degree from yesterday), it will point out that it isn’t declining additional. Wanting forward, the following degree to watch under 142.65 is 142.10.”
