Sharp rally seems extreme, however there’s a likelihood for US Greenback (USD) to rise additional to 7.2250 towards Chinese language Yuan (CNH), UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Sharp rally seems extreme
24-HOUR VIEW: “We anticipated USD to ‘commerce in a variety of seven.1700/7.1835’ yesterday. The next value actions didn’t prove as we anticipated. Quite than buying and selling in a variety, USD rallied and closed greater by 0.44% (7.2129), its largest one-day acquire in about 4 months. The sharp rally seems extreme, and as a substitute of continuous to rally, USD is extra more likely to consolidate at present, most likely between 7.1920 and seven.2140.”
1-3 WEEKS VIEW: “Two days in the past (29 Jul, spot at 7.1820), we indicated that ‘upward momentum is constructing, however for a continued advance, USD should first shut above 7.1910.’ Yesterday, in a sudden transfer, USD surged to a excessive of seven.2140 earlier than closing on a robust word at 7.2129 (0.44%). The sharp rally seems to be extreme, however so long as USD holds above 7.1750 (‘sturdy assist’ stage beforehand at 7.1660), there’s a likelihood for it to rise additional to 7.2250.”
