USD/CNH focused on the 7.0700/7.1400 range – UOB

FX Strategists at UOB Group expect USD/CNH to remain within the 7.0700/7.1400 range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘is likely to continue to consolidate’ and expected it to ‘trade within a 7.1000/7.1220 range’. Our view was not exactly wrong but USD traded within a lower range than anticipated (between 7.0892 and 7.1135). The price action offers no fresh clues and further consolidation would not be surprising. Expected range for today, 7.0850/7.1110.”

Next 1-3 weeks: “After dropping sharply late last week, USD has not been able to make much headway on the downside. Downward pressure has eased and our expectation for USD to move toward the end-April low of 7.0535 is not likely to work out. From here, USD is more likely to trade sideways and within a broad range of 7.0700 and 7.1400 for a period.”