Surge in momentum suggests additional US Greenback (USD) energy, however the tempo and extent is prone to be extra average. The extent to look at is 7.2400, UOB Group FX analysts Quek Ser Leang and Peter Chia word.
USD to succeed in 7.2400 close to time period
24-HOUR VIEW: “Our view for USD to rise above 7.2200 yesterday didn’t flip. After reaching a excessive of seven.2133, it staged an unexpectedly sharp drop, reaching a low of seven.1420. The decline seems to be extreme, and USD is unlikely to weaken a lot additional. At present, USD is extra prone to commerce in a variety between 7.1350 and seven.1770.”
1-3 WEEKS VIEW: “USD soared by 1.48% two days in the past, closing at 7.2040. Yesterday (07 Nov, spot at 7.2020), we indicated that ‘The surge in momentum suggests additional USD energy, however severely overbought situations counsel the tempo and extent is prone to be extra average.’ We indicated that ‘The extent to look at on the upside is 7.2400,’ and ‘ought to USD breach 7.1300, it will point out that the rally is able to take a breather.’ We didn’t anticipate the sharp pullback that reached a low of seven.1420. Though momentum has slowed, we are going to proceed to carry the identical view so long as 7.1300 is just not breached.
