USD/CNH faces downside pressure very near-term – UOB

FX Strategists at UOB Group noted USD/CNH is seen losing some ground in the very near-term.

Key Quotes

24-hour view: “USD traded between 7.0690 and 7.0848 yesterday (narrower than our expected range of 7.0710/7.0900) before settling at 7.0775 (- 0.13%). USD opened on a weak note this morning and the risk for today is on the downside. From here, barring a move back above 7.0800, USD could weaken further to 7.0600. Next support is at 7.0550.”

Next 1-3 weeks: “USD traded within relatively narrow range the last couple of days. For now, there is no change to our latest narrative from last Thursday (25 Jun, spot at 7.0760). As highlighted, USD is expected to trade sideways, likely within a broad 7.0400/7.1000 range for now