
Softening underlying tone might result in US Greenback (USD) edging decrease and testing 7.1720 towards Chinese language Yuan (CNH). Within the longer run, rising momentum suggests USD might rise, however it’s too early to anticipate 7.2000 to come into sight, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Growing momentum suggests USD might rise
24-HOUR VIEW: “When USD was at 7.1825 yesterday, we highlighted that ‘there’s a probability for USD to rise above 7.1900, but it surely won’t be capable to preserve a foothold above this stage.’ Our view didn’t materialise, as USD rose to 7.1881 earlier than ending the day largely unchanged (7.1843, +0.04%). Regardless of the quiet value motion, the underlying tone seems to be softening. Nonetheless, that is more likely to result in USD edging decrease and testing 7.1720 as an alternative of a sustained decline. The main assist at 7.1630 is unlikely to come back below menace. On the upside, resistance ranges are at 7.1840 and seven.1900.”
1-3 WEEKS VIEW: “Yesterday (09 Jul, spot at 7.1825), we highlighted that ‘the rising upward momentum suggests USD might rise above 7.1900.’ USD then rose to 7.1881 earlier than pulling again. There was no additional enhance in momentum, however offered that USD holds above 7.1630 (no change in ‘robust assist’ stage), there’s nonetheless an opportunity for USD to rise above 7.1900.”