Euro (EUR) is unlikely to weaken much further; it is more likely to trade in a 1.0475/1.0535 range. In the longer run, current price movements are likely part of a range trading phase, expected to be between 1.0465 and 1.0610, UOB Group’s FX analyst Quek Ser Leang and Lee Sue Ann note.
EUR expected to be between 1.0465 and 1.0610
24-HOUR VIEW: “EUR fell to a low of 1.0498 two days ago before recovering. Yesterday, we held the view that ‘there is a chance for EUR to retest the 1.0500 level before a more sustained recovery is likely.’ However, EUR dropped more than expected to a low of 1.0478, closing at 1.0494 (-0.30%). Despite the decline, there is no clear increase in downward momentum, and EUR is unlikely to weaken much further. Today, EUR is more likely to trade in a 1.0475/1.0535 range.”
1-3 WEEKS VIEW: “We indicated yesterday (11 Dec, spot at 1.0530) that ‘the current price movements are likely part of a range trading phase, expected to be between 1.0465 and 1.0610.’ There is no change in our view.”