FX Strategists at UOB Group now expect EUR/USD to navigate between 1.1865 and 1.2005 in the next weeks.
Key Quotes
24-hour view: “Our expectation for EUR to ‘trade sideways’ was incorrect as it popped to 1.1975 before dropping back down quickly. Despite the advance, upward momentum has barely improved and EUR is unlikely to strengthen further. For today, EUR is more likely to trade between 1.1900 and 1.1950.”
Next 1-3 weeks: “We have expected a weaker EUR since the middle of the month. In our latest narrative from last Wednesday (23 Jun, spot at 1.1940), we indicated that ‘the recent rebound in EUR has been more resilient than expected and a break of 1.1970 would indicate that the weak phase in EUR has run its course’. EUR cracked 1.1970 last Friday as it popped to a high of 1.1975 before easing off. Downward momentum has more or less dissipated and the current movement is viewed as the early stages of a consolidation phase. From here, EUR could trade within a 1.1865/1.2005 range for a period of time.”