The present value actions nonetheless seem like a part of a consolidation part, possible between 146.90 and 148.00. Within the longer run, sharp drop in USD has scope to increase, however any decline could not break beneath 145.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Sharp drop in USD has scope to increase
24-HOUR VIEW: “When USD was at 147.50 yesterday, we said that ‘the present value actions are possible a part of a consolidation part, most likely between 147.00 and 148.20.’ USD subsequently traded in a narrower vary than anticipated (146.95/147.88), earlier than closing barely decrease by 0.17% at 147.35. The worth actions nonetheless seem like a part of a consolidation part, possible between 146.90 and 148.00.”
1-3 WEEKS VIEW: “In our most up-to-date narrative from Monday (04 Aug, spot at 147.25), we highlighted that ‘the sharp drop in USD from final Friday has scope to increase.’ Nevertheless, we identified that ‘any decline could not break beneath 145.80.’ We proceed to carry the identical view. Total, solely a breach of 148.60 (‘robust resistance’ stage was at 149.00) would point out that the scope for the sharp drop to increase has pale.”
