USD/CNH sticks to the sideline trading – UOB

USD/CNH is expected to keep the ongoing consolidative pattern unaltered in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded in a quiet manner and within a relatively tight range of 7.0215/7.0375 last Friday (narrower than our expected sideway trading range of 7.0230/7.0430). The price action offers no fresh clues and we continue to expect USD to trade sideways, likely between 7.0230 and 7.0400”.

Next 1-3 weeks: “There is not much to add as USD traded in a quiet manner and closed unchanged at 7.0326 last Friday (29 Nov). The movement is still viewed as part of a sideway-trading phase. In other words, we continue to expect USD to trade between 6.9700/7.0500 for a while more”.